Does Tax apply automatically if Tax Applicability is set to Applicable?
Summary:
Tax Defined has Tax Applicability as Applicable, does it mean it will apply based on Regime of Tax irrespective of Tax Applicability Rules are defined or not.
Need Expert advice so we can move ahead with decision on solutioning it.
We have setup Tax Recoverability for Employee Expense Report by Defining Configuration Owner Tax Options (COTO) for this event and Regime Determination Set is Tax Regime.
With this much setup Oracle Fusion Tax is applying both Input and Output Tax as per Regime. We were expecting it will not apply until we have applicability Rules defined. Does this behavior is influenced by Tax level setup which is marked as Applicable and do we need to define rule To not apply these by default and apply for specific condition explicitly.