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X12 transaction guide · Government and regulatory

EDI 150 Tax Rate Notification

The X12 document taxing authorities use to transmit information about tax rates.

Sent by
Taxing authority
Received by
Businesses, tax software providers or other agencies
Standard
ANSI ASC X12

What is an EDI 150?

The EDI 150 Tax Rate Notification is the ANSI X12 transaction set taxing authorities can use to transmit information about tax rates electronically.

Sales and use tax rates change often and vary by jurisdiction. Businesses and tax software providers must apply the right rate from the right date to every transaction. Receiving rate changes directly from authorities as data reduces errors and the manual work of tracking announcements. Rate changes typically take effect at the start of a quarter or another period set by law, so authorities send notifications ahead of the effective date to give businesses time to update their systems.

How the EDI 150 worksDiagram of the EDI 150 Tax Rate Notification. Taxing authority sends it to businesses, tax software providers or other agencies. It usually starts the exchange. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment) and N1 (Party Identification) and detail: the required TFS loop with TFS (Tax Form), the required TRS loop with TRS (Tax Rate) and the required FGS loop with FGS (Form Group) and the required TRS loop with TRS (Tax Rate). 2 optional loops are listed by their first segment.How the EDI 150 worksTax Rate Notification: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 150SENDERTaxing authorityRECEIVERBusinesses, taxsoftware providers orother agencies997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code TNGS … GETransaction set 150ST … SEHEADINGBGNBeginning SegmentN1Party IdentificationDETAILRequired loop TFS · repeats up to 1,000TFSTax FormRequired loop TRS · repeats up to 100,000TRSTax RateRequired loop FGS · repeats up to 1,000FGSForm GroupRequired loop TRS · repeats up to 100,000TRSTax Rate+ 2 optional loops, starting with:N1Blue box: required loop. Optional loops are listed by the segment that starts them; when a loop is used, that first segment is required. Optional segmentsoutside loops are not drawn.Structure: required segments and loops in the X12 008010 listing for the 150. Your trading partner's implementation guide adds its own requirements.
How the EDI 150 worksDiagram of the EDI 150 Tax Rate Notification. Taxing authority sends it to businesses, tax software providers or other agencies. It usually starts the exchange. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment) and N1 (Party Identification) and detail: the required TFS loop with TFS (Tax Form), the required TRS loop with TRS (Tax Rate) and the required FGS loop with FGS (Form Group) and the required TRS loop with TRS (Tax Rate). 2 optional loops are listed by their first segment.How the EDI 150 worksTax Rate Notification: who sends it, where itfits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 150SENDERTaxing authorityRECEIVERBusinesses, taxsoftwareproviders orother agencies997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code TN (GS … GE)Transaction set 150 (ST … SE)HEADINGBGNBeginning SegmentN1Party IdentificationDETAILRequired loop TFS · repeats up to1,000TFSTax FormRequired loop TRS · repeatsup to 100,000TRSTax RateRequired loop FGS · repeatsup to 1,000FGSForm GroupRequired loop TRS ·repeats up to 100,000TRSTax Rate+ 2 optional loops, starting with:N1Blue box: required loop. Optional loops are listedby the segment that starts them; when a loop isused, that first segment is required. Optionalsegments outside loops are not drawn.Structure: required segments and loops in the X12008010 listing for the 150. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 150, to whom, and which documents usually come before and after it. The lower part shows what X12 release 008010 itself requires: the envelopes around the 150 and the segments and loops the standard marks as required, area by area. Optional loops are listed by the segment that starts them rather than drawn in full. This is the standard's minimum, not a trading partner's requirement: each partner's implementation guide usually makes some optional loops mandatory, restricts the codes and may use a different release.

Expand diagram Download SVG

When it is used

  • Distributing new tax rates and effective dates
  • Announcing rate changes for local jurisdictions
  • Updating tax engines and billing systems

Where it fits in the document flow

This document 150 Tax Rate Notification
Usually followed by 997 Functional Acknowledgment

Structure

Mandatory segments in the 150 (X12 release 008010)

The segments X12 release 008010 marks as mandatory at their level, in order. Segments inside optional loops are needed only when the loop is used. This is the standard's requirement, not your trading partner's: each partner's implementation guide names the release it uses, adds the optional segments it requires and restricts the values. The requirement status comes from one published X12 reference listing and has not been checked against a second source.

  • ST
  • BGN
  • N1
  • TFS
  • TRS
  • FGS
  • SE

Practical example

The 150 in practice

A state approves a local sales tax increase for several counties from the next quarter. The revenue department sends a 150 with the new rates by jurisdiction and the effective date. A retailer's tax engine loads the rates so sales from that date are taxed correctly.

Implementation

Implementation considerations for the 150

  • Load rates before their effective dates.
  • Map jurisdiction codes to your tax engine.
  • Keep a history of rates for audits and returns.
  • Combine with jurisdiction sourcing data (158).

How ECOM helps

Automate the 150 with ECOM

Solution

Financial Document Automation

Automate invoices, remittances, payment files and bank statements from capture to posting.

Industry

Retail

Retail and eCommerce EDI for suppliers and retailers, from purchase order to payment, with compliance built in.

Solution

EDI Integration

Exchange X12 and EDIFACT documents with partners and integrate them directly with your ERP.

More general questions about EDI are answered in the EDI FAQ.

Related transactions

Related government and regulatory documents

All 29 government and regulatory documents

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