How to handle tax free zones in cloud tax
SummaryHow to handle tax free zones in cloud tax
How can we handle tax free zones or free trade zones, where no VAT/GST is applicable, or applicable at a reduced rate.
Few example: UAE have free zones e.g. Jebel Ali. Malaysia have designated tax areas e.g. Langkawi. In US offshore supply is tax exempt. In India any goods supplied to territorial waters beyond 14 nautical miles is taxed at reduced rate. How can we handle all such case in cloud tax?
Earlier we handled all such cases by creating custom geography structures and wrote tax rules based on those geography elements. But now we are planning to import Vertex/Loqate geographies and do not want to add custom structure so that we can update our geographies whenever an update is available. Kindly let me know your comments and suggestions on how we can handle such tax free zones in Oracle cloud tax.