Concept: Self-Assessed Tax

Self-assessed tax enables you to pay tax to the authorities when a supplier or payee doesn't charge you tax. You can self-assess tax on these invoices and financial transactions:

Supplier invoices.

Ad hoc payments.

Procurement card transactions.

Purchase orders.

Change orders.

The tax amounts that you self-assess on purchase orders and change orders are estimates only. Workday does not include these amounts in your reportable amounts.

Sample Configurations

Use Case	Example	Considerations
You self-assess value-added tax (VAT) or goods and services tax (GST).	Your Irish company purchases goods from a Dutch supplier who isn't registered for VAT in Ireland and doesn't charge you VAT. You self-assess the Irish VAT on the supplier invoice and pay it to the Revenue Commissioners of Ireland.	You can set up: A transaction tax status for suppliers who aren't registered for VAT in your ship-to addresses. Transaction tax rules for countries: With a condition on the supplier status. That override the Tax Option with Calculate Self-Assessed Tax .
You have spend items or spend categories for which the supplier doesn’t charge tax for your ship-to locations.	Your US company purchases laptops for its employees from an out-of-state US supplier. The supplier doesn't have nexus in the ship-to location and doesn’t charge you sales tax for the laptops. You self-assess tax for the laptops on the supplier invoice and pay the tax authorities.	You can set up: A transaction tax status for suppliers who aren't registered for VAT in your ship-to addresses. Transaction tax rules for countries: With conditions on the supplier status and on the items or spend categories that you self-assess. That override the Tax Option with Calculate Self-Assessed Tax .
You have invoices with tax codes where 1 tax rate is payable to the supplier and another is payable to the tax authority.	Your Canadian company purchases goods from a Canadian supplier who charges goods and services tax (GST), but not provincial sales tax (PST). You: Pay the GST to the supplier. Self-assess the PST and pay it to the tax authorities.	You can set up transaction tax rules that override the Tax Option with: Calculate Self-Assessed Tax for the tax rate that you self-assess. Calculate Tax Due to Supplier for the tax rate that you pay to the supplier. Then, when you select a tax code on a transaction: Workday populates the tax option for each tax rate included in the tax code with the tax option you've configured. You can change the tax option for each tax rate included in the tax code.