Tax Location Groups

Use the Tax Location Groups function to group tax locations into tax location groups, which determine sales tax rates. In Accounts Receivable, tax location groups are assigned to customers, recurring entries, ship-to addresses, and transactions. See Tax Locations for more information about tax locations.

You can also use this function to set up tax on tax. Tax on tax means that taxing authorities charge tax on the selling price of goods or services and taxes by another tax authority. When tax on tax is calculated, the first tax rate is calculated and subtotaled before the second tax rate is calculated and added for the total selling price.

Tax on tax is used primarily outside of the United States. Goods and services tax (GST) and provincial sales tax (PST) are examples of taxes that can require tax on tax capabilities. Contact your local tax authorities for more information.

Creating a Tax Location Group

Click the New button, on the toolbar, to open a blank tax location group record.
Enter the tax group ID in the Tax Group ID field.
Enter a description of the new tax location group in the Description field.
Select the reporting method for the tax location group from the Reporting Method field.

Select	To
Combined	Not print detailed tax information on invoices or reports.
Separate	Print detailed tax information on invoices or reports.

Select the tax location ID for each tax authority level of the group from the Level field(s).
Note: Use the Tax on Level check boxes to set up tax on tax. The Tax Group Detail dialog box appears if you place a check mark in a Tax on Level check box for Levels 2 through Level 5.
Click the Save button, on the toolbar, to save the new tax location group.