scope:

This document addresses the functional requirements that build on the ISO 21378 for audits in the areas of custom duties and indirect taxes (e.g., VAT and excise duties). It addresses how tax auditors obtain audit data for these audits, including data element formats and to some extent content requirements.

From a customs and indirect tax perspective, this document aims to support data exchange of relevant characteristics on taxable transactions and related import duties, excise duties, VAT and similar consumption taxes.

In practice, this document applies to virtually every step in the whole process in the supply chain and covers both goods and services. It includes domestic transactions, cross-border transactions and can cover both third party and intercompany transactions or even movements of goods within the same company. This document doesn't describe when an event is taxable nor how to calculate tax or customs duties as this is legislation specific and the situation can vary from country to country.

Custom duties are involved in the implementation and enforcement of legislation on import and export of goods, storing and processing of bonded or excise goods and levying duties within the supply chain, like cross-border import duties or (domestic) sales. Value-added tax (VAT) and its equivalent in several jurisdictions (goods and services tax, or GST), is a tax collected at all stages of the process of production and distribution of goods and services, accumulation of the tax being prevented by allowing businesses to deduct the tax they incur from the tax they collect.

This document covers standard exchange of the data related to taxable operations / activities by businesses to perform controls and audits more effectively and efficiently through automated tests. This document focuses on the characteristics related to taxability and the related formalities of the indirect tax and customs duties regulations. It includes the result of a tax calculation, the relevant underlying parameters which can be processed by ERP-systems and/or indirect tax / custom duties systems, and data needed to comply with indirect tax and customs duties legislation and formalities.