Tax on Late Payment Charges (Late charge type: Debit Memo)

We are currently configuring Late Charges in Oracle Receivables, and one of our client's requirements is to apply 12% VAT to late payment penalties.

Has anyone successfully configured VAT for late charge computations? Based on our review of the current setup, we couldn't find an option to default a specific tax code for the debit memos generated by the Late Charges process.

Is there a standard configuration or workaround to ensure that the appropriate VAT is automatically applied to these generated debit memos?

Thank you.