How to: Set Up Sales Tax Details
The Tax Details window contains a matrix table that uses different combinations of sales tax jurisdictions and sales tax groups to establish sales tax rates. For each tax jurisdiction, you are advised to set up one tax group for normal sales tax, another tax group for items or services that are not taxed, and an additional tax group for every type of item or service that is handled with a different sales tax rate in that jurisdiction.
In the United States, when you sell to a customer at a location where you do not have a situs—or a legal location in that state—you do not collect sales tax. For locations in which you do not have a situs, ensure that both the Tax Below Minimum and Tax Above Maximum fields are 0.00.
To set up sales tax details
In the Search box, enter Tax Details, and then choose the related link.
In the Tax Details window, on the Home tab, in the New group, choose New.
In the New - Tax Details window, fill in the fields as described in the following table.
Field Description Tax Jurisdiction Code
The tax jurisdiction code for the tax detail entry.
Tax Group Code
The tax group code for the tax detail entry.
Tax Type
Sales and Use Tax – To apply both sales tax and use tax to the tax detail entry.
–or–
Excise Tax – To apply excise tax to the tax detail entry.
–or–
Sales Tax Only – To apply only sales tax to the tax detail entry.
–or–
Use Tax Only – To apply only use tax to the tax detail entry.
Effective Date
The date from which the tax detail entry is effective.
Tax Below Maximum
The percentage that will be used to calculate tax for all amounts or quantities below the maximum amount/quantity in the Maximum Amount/Qty field.
Maximum Amount/Qty
The maximum amount or quantity.
Tax Above Maximum
The percentage that will be used to calculate tax for all amounts or quantities above the maximum amount/quantity in the Maximum Amount/Qty field.
Choose the OK button.
To set up sales tax for a customer
In the Search box, enter Customers, and then choose the related link.
Select the required customer. On the Home tab, in the Manage group, choose Edit.
On the Invoicing FastTab, fill in the fields as described in the following table.
Field Description Tax Liable
Select to set up tax liability.
Tax Area Code
The tax area code of the customer.
Tax Identification Type
The tax identification type of the customer.
Choose the OK button.
For customers with ship-to addresses, you can select whether sales to each alternative address are tax liable, and you can enter a tax area code for each alternative address. This allows you to select the tax area that corresponds to the ship-to location.
See Also
Tasks
How to: Set Up Sales Tax
How to: Set Up Sales Tax Groups
How to: Set Up Sales Tax Jurisdictions
How to: Set Up Unrealized Sales Tax and Sales Payment Discounts
How to: Set Up Use Tax and Purchase Tax