US Tax Codes

Tax Codes represent names and associated rates of Tax set by specific Tax Authorities. For this reason, Tax Codes are associated with their related Tax Authority via a drop-down list.

There are a few things worth noting:

  • The Tax Authority drop-down is mandatory. Each code must be associated with a specific Tax Authority.

  • The field 'Only used in Tax Group' requires a bit of explanation. Normally Tax Codes can be assigned directly to Sales Documents, such as Invoices. In some cases, it may be necessary to group Tax Codes together in a Tax Group and apply the collective rate. If this Tax Code is to be used exclusively in a Tax Group i.e. it is never applied in isolation, then ticking this box will remove it from the list of selectable Tax Codes on the Sales Documents. It is simply a method of reducing the number of selectable Tax Codes/Groups.

  • The current and historical Tax Rates are entered into the table. If there are no entries the Tax Rate is set to zero.

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