Use the Sales tax codesform to set up tax codes for items that are taxed using the standard goods and services tax percentage, exempt items that are not subject to tax, and items that have special trade zone status in which the tax rate is 0%.

For more information, click Help> Applications and Business Processes, and on the Searchtab, enter Create various kinds of sales tax codes, and click List Topics.

1. Click General ledger> Setup> Sales tax> Sales tax codes .

2. Press CTRL+N to create a new tax code.

3. In the Upper limit for sales tax calculation.field, enter a code, such as GST, and then enter other information about the sales tax code.

4. Click the Calculationtab. In the VAT typefield, select the type of tax to calculate, based on the type of item that the tax is applied to.

5. Click the Valuesbutton. Enter the dates that the tax code is in effect. In the Valuefield, enter one of the following values:

   • For standard items, enter the current tax percentage. For example, if the tax percentage is 5%, enter 5.00.

   • For exempt items, do not enter a value.

   • For zero-rated items, enter 0.00.

6. Close the Valuesform.

7. Repeat steps 2 through 6 to set up additional tax codes.