Proposed Standards Requiring Public Comment – Tax Accommodation Changes

The Tax Accommodation Subcommittee of the LEDES Oversight Committee has posted proposed changes with respect to two standards projects.

Project 1:  Accommodating more cursor columns to the right of the decimal separator for the tax rate only. 

The issue is that the tax rate field is too short to accommodate the tax rate in certain jurisdictions.

The standards proposed to be updated for this purpose are:  LEDES 98BI, LEDES XML 2.0 and LEDES XML 2.1.  No other standards will be updated for this purpose.  The only revision in each document is to increase the tax rate field to 10 characters to the right of the decimal separator.  The version numbers have not been updated to promote ease of adoption.  The field in question in each format document is:

  • LEDES 98BI:  LINE_ITEM_TAX_RATE changed from 0.4 to 0.10 characters;
  • LEDES XML 2.0:  @TAX. tax_rate_percent changed from decimal (1.4) to decimal (1.10);
  • LEDES XML 2.1:  @TAX. tax_rate_percent changed from decimal (1.4) to decimal (1.10).

All other money fields in the formats remain unchanged.

Project 1 Files re Tax Rate Changes

Project 2:  New functionality to accommodate Tiered Taxes.   

The issue is that there is a tiered withholding tax in Japan that is not accommodated in our current billing formats.  In the proposed format XML Ebilling 2.2, see Row 77 for an explanation and illustration of Tiered Taxes.

The changes required to accommodate Tiered Taxes are extensive.  The proposed solution adds 2 new segments and 13 fields to the file, and significantly changes the invoice math statement.

In addition to the above, the Project 1 changes to accommodate an expanded tax rate also appear in this file.

Project 2 File re Tiered Tax

To Provide Feedback

The survey to collect public feedback can be found here.

The public comment period for these changes will remain open until 8 September, 2019.