Taxpayer types for Latin America

You can set up the types of tax-responsible entities that the company operates with. These entities can include customers, vendors, employees, and even the company itself.

Prerequisites

The following prerequisites must be met before you can set up taxpayer types for organizations in Latin America:

• Tax ID types must be configured.
• Document class letters must be configured.

Set up a taxpayer type for Latin America

1. Go to Organization administration > Setup > LATAM > Taxpayer type.

2. In the General section, in the Taxpayer type field, enter the register's code.

3. In the Description field, enter an explanation of the taxpayer type.

   Note

   The Taxpayer type and Description fields are required.

4. In the Settings section, set the options as required to complete the configuration according to the characteristics of the taxpayer type.

   Option	Description
   Foreign taxpayer	Set this option to Yes if the registered entity is foreign.
   Validate vendor AC	Set this option to Yes if the authorization code that the vendor issues must be validated.
   Internal taxpayer	Set this option to Yes if the taxpayer is internal and doesn't represent a real entity. No transactions that are made by entities of this taxpayer type will be entered on tax reports.
   Mandatory country of residence	Set this option to Yes to make the Country of residence field required in the entity configuration.
   Mandatory registered jurisdiction	Set this option to Yes to make the Registered jurisdiction field required in the entity configuration.
   Mandatory country identification number	Set this option to Yes to make the Country identification number field required in the entity configuration.
   Mandatory state identification number	Set this option to Yes to make the State identification number field required in the entity configuration.

5. In the Document types grid, add the tax Id types that are associated with the taxpayer type according to the country/regions's legislation.

   Note

   This configuration and the tax ID type configuration in the country/region address book will let you filter or directly assign the tax ID type in the customer or vendor record.

6. In the Document class letter grid, select the IDs that the taxpayer type uses in transactions.

7. Select Save.

Add the fiscal codification provided by the fiscal authorities

You can use the Tax application option to add the fiscal codification that's provided by the fiscal authorities.

1. Go to Organization administration > Setup > LATAM > Taxpayer type.
2. On the Action Pane, select Tax application.
3. Select New to add a line to the grid.
4. In the Tax application Id field, select a value.
5. In the Tax application code field, enter the code that the fiscal authority uses to identify the taxpayer type.
6. Select Save.