07.1 Tax Authority

Definition: What is it?

The 'Edit Tax Authority' sub menu is the first of six sub menus used in the creation or update of a Tax Authority. On the creation or update of a Tax Authority it is the default screen that is displayed.

What is it used for?

It can be used for updating the basic details of a Tax Authority such as:

• Changing whether a tax id or code is required for an exemption 
• Modifying the tax id or code format
• Updating where or not to include the tax calculation as part of the product price

What's on the screen?

 TO DO

How do I create a new Tax Authority?

IMPORTANT: You will need to create a party in Party Manager for the tax authority before you can add a new tax authority in the accounting / tax authorities screen.

Steps to create the party to be used for the tax authority are as follows:

• Create New Party Group
• Fill in basic details (eg name, address etc)
• Once the party record is created then add the role of 'Tax Authority' to the party

Only when the tax authority party record is created can you continue.

Example :To add a new tax authority

1. Press the 'New Tax Authority' button
2. The Edit Tax Authority screen is displayed
3. Select or enter the code for the country, state or region that is applicable for the 'Geo' field
4. Select or enter the party id of the Tax Authority party that has been created in Party Manager
5. Leave the 'Require Tax Id for Exemption' field at its default of 'Y' (NOTE TO CHECK: Am unsure of what this does....Does it not calculate tax if a Tax Id or VAT number for a customer is specified? Need to understand what functionality this is linked to)
6. Leave 'Tax Id Format Pattern' blank (NOTE TO CHECK: I think this specifies the format of the tax id so that it can be somehow validated)
7. Fill in the 'Include Tax in the price' - the default is 'N'. (NOTE: If prices need to include tax such as GST or VAT in the price then change this to 'Y')
8. Press the 'Update' button