Global Tax Determination currently supports eight types of tax obligations, referred to as registration statuses.

Global Tax Determination (GTD) requires you to specify in which jurisdictions your organization has a responsibility to register, collect, and report taxes. This is called a tax obligation or nexus.

Established (default)

Organizations with this status have a fixed establishment or regular place of business, such as a headquarters or branch, in the jurisdiction.

This is the standard registration status configuration in Global Tax Determination and should be used by all customers unless there are special circumstances. Using this configuration, transactional input parameters (e.g. SF, ST, LOR, LOA, LOSP) will determine the appropriate tax type.

Identified

Organizations with this status are registered in the jurisdiction for tax purposes but have no fixed establishment.

Note:

For US transactions: In the case of organizations with this status, Global Tax Determination will apply seller's use tax at the destination (Ship To) state by default. A jurisdictional law with different logic for seller's use tax can override this. This status should only be used in situations where standard Global Tax Determination logic is unable to apply the correct tax type to a transaction due to custom configuration.

Established + Union scheme

This status applies to EU taxpayers only and should be used by businesses that have a fixed establishment in the European Union and obligations to report sales of goods, digital goods, or digital services under the Union OSS scheme.

The One-Stop Shop (OSS) is an optional scheme that allows companies to register, collect, and report VAT in just one EU country rather than multiple EU countries. This means that when processing business-to-consumer transactions within the EU involving goods, digital goods, or digital services, the VAT rate of the country where the consumer is located will apply. This type also allows the OSS registration to be identified as the one used for reporting for the EU OSS return.

Identified + Union scheme

This status applies to businesses without a fixed establishment in the European Union that opt to register, collect, and report sales of goods within the EU under the Union OSS scheme.

The One-Stop Shop (OSS) is an optional scheme that allows companies to register, collect, and report VAT in just one EU country rather than multiple EU countries. This means that when processing business-to-consumer transactions within the EU involving goods, the VAT rate of the country where the consumer is located will apply. This type also allows the OSS registration to be identified as the one used for reporting for the EU OSS return.

Distance sales

Before July 1, 2021, this status applied to sellers of intra-community supply of goods to consumers in the European Union when the seller business exceeded the distance sale threshold of the consumer's member state.

Currently, this status should not be used.

Special taxpayer

Organizations with this status are generally registered for limited tax collection and reporting liability, including registration under a simplified or special registration regime, compared to broader liability under the other nexus types.

Non-Union scheme

This status is optional and applies to non-EU sellers of digital goods or digital services supplied to consumers in the EU. Businesses with an establishment in the EU should not use this registration status.

In earlier versions of Global Tax Determination, this status was called Special Scheme (Digital Goods).

Voluntary use tax (VUT)

This status applies to United States taxpayers only, with some state-specific details:

• Alabama

  The VUT registration status in Alabama allows customers who are remote sellers and have registered and been granted permission by the state to participate in the Simplified Sellers Use Program. This program allows clients to charge tax at a rate of 8% and avoid collecting and remitting specific local taxes.

• Illinois

  The VUT registration status in Illinois allows customers to collect sales tax, including the IL Retailer Occupation Tax (ROT), at Destination. This nexus type will produce proper results for Remote Sellers and Marketplace Facilitators selling third-party goods.

  Marketplace Facilitators selling their own goods should not use this type, especially if the transaction originates from within Illinois (SF, LOR, LOA).

• Louisiana

  The VUT registration status in Louisiana allows customers to collect tax at a combined rate of 8.45% and report and remit tax to the Louisiana Department of Revenue. This type is typically only used by Direct Marketers without a physical presence in Louisiana; if a Direct Marketer does not meet the economic nexus threshold, they can voluntarily collect at the 8.45% rate.

• Texas

  The VUT registration status in Texas allows customers to collect the Single Local Use Tax Rate instead of the standard local rate. This is an alternative local tax rate that remote sellers can use instead of collecting and remitting the total local tax in effect at the destination address.

  Note:

  Global Tax Determination can also validate registration format in select taxing jurisdictions.

  If a registration number passed with the transaction differs from the number entered during the configuration of Global Tax Determination, the number passed with the transaction will take precedence. However, it will not overwrite the original configuration.