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Use this form to create and manage the sales tax groups that determine the sales tax and duty calculation for customers, vendors, or ledger accounts.

Sales tax rates frequently depend on the geographic location and the kind of business transaction that occurs. Therefore, customers or vendors that have similar tax requirements are assigned the same sales tax group, which contains the appropriate sales tax codes, and customers with different tax profiles are assigned different sales tax groups. For example, domestic and foreign customers are sometimes taxed at different rates and require different sales tax groups, and some customers are exempt from sales tax, while others are not.

The sales tax groups are associated with sales tax codes, or, in the case of some U.S. companies, with sales tax jurisdictions that contain the sales tax codes.

Tasks that use this form

Navigating the form

The following tables provide descriptions for the controls in this form.

Tabs

Tab

Description

Overview tab

Create sales tax groups by code and name, and type in basic information about the group in the two fields provided. Although the fields are named and , they can contain any kind of search criteria that you want to use for sales tax groups.

If sales tax jurisdictions are enabled in your company configuration, two other fields are available. In these two other fields, select the sales tax group setup and the rounding principle of the group.

General tab

View the information on the tab, and select if sales tax is reversed on cash discounts.

If sales tax jurisdictions are enabled in your company configuration, an additional field is available. In this additional field, select the way you want the sales taxes to appear on the printed invoice.

Setup tab

Select tax codes for the tax group.

–or–

If sales tax jurisdictions are enabled in your company configuration (and if you select in the drop-down list on the or tab of the selected sales tax group) view the sales tax codes that are included in the sales tax jurisdiction that is selected on the tab.

Note Note

To add a sales tax code to a sales tax jurisdiction, select the jurisdiction in the form, and then click .

Enter the sales tax jurisdictions that apply to the sales tax group.

This tab is available if sales tax jurisdictions are enabled in your company configuration and if you select in the drop-down list on the or tab of the selected sales tax group.

Fields

Field

Description

Enter a unique identifier for the sales tax group.

Tip Tip

Create a code that allows you to recognize the sales tax group by its code alone.

Enter a name that describes the sales tax group.

Tip Tip

Name the sales tax groups so that you recognize them easily.

Select the basis on which taxes for the sales tax group are calculated. This field is only available if your company configuration includes sales tax jurisdictions.

If you select , the tab appears, and you must complete the setup of the sales tax group in the fields on this tab.

If you select , you cannot change the sales tax codes on the tab because each sales tax jurisdiction is set up with specific sales tax codes. You can change the sales tax codes that are included in a sales tax jurisdiction on the form.

Note Note

If you make changes in a sales tax jurisdiction and want the changes to apply to a sales tax group, delete the outdated sales tax jurisdiction on the sales tax group (press ALT+F9) and then add the updated sales tax jurisdiction.

The rounding principle that applies to the taxes of the sales tax group. This field is available if your company configuration includes sales tax jurisdictions.

Select or view the kind of rounding that applies to the sales tax group:

  • – Rounding is according to the sales tax code round-off. See the value in the field on the tab of the form.

  • - Rounding is according to the sales tax code combination that is attached to each invoice line. For more information, see Rounding by sales tax code combinations.

Enter a search criterion for the sales tax group. It could be anything that allows your company to sort sales tax groups. The text in the user interface ( ) is only an example of a search criterion.

Enter a search criterion for the sales tax group. It could be anything that allows your company to sort sales tax groups. The text in the user interface ( ) is only an example of a search criterion.

Select this check box to allow reversals of sales tax on cash discounts for the selected sales tax group. When you create a sales tax group, the field is selected or cleared according to the value in the field in the form. This default value can be changed on the individual sales tax group.

Example

The sale is for $100.00, with a 10% tax of $10.00, for a total of $110.00. The customer received a 2% cash discount for early payment. If you select this check box, the sales tax of $10.00 is automatically reversed by 2% of $10.00, or $0.20.

Select the way you want the sales taxes to appear on the printed invoice.

  • – The sales taxes are shown by sales tax code.

  • – The sales taxes are shown by sales tax group.

  • – No sales tax details are shown on the invoice. This option is a logical selection for sales tax groups that are based on sales tax jurisdictions for which you have selected the check box on the tab.

Note Note

Depending on how a company designs their invoices, the itemized tax amounts are in the body or in the footer of the invoice. In the Microsoft Dynamics AX default setup that can be modified in the or forms, the itemized taxes are in the footer of the invoice. If you are complying with EU115 legislation, you can print tax codes on each line of an invoice. To do this, select in the field on the tab of the form.

Select a tax jurisdiction code that applies to the selected sales tax group. This field is available if your company configuration includes sales tax jurisdictions.

Name of the tax jurisdiction code. This field is available if your company configuration includes sales tax jurisdictions.

Select if sales tax is not calculated for the sales tax jurisdiction code that is attached to the sales tax group. This field is available if your company configuration includes sales tax jurisdictions.

In some cases, the tax base must be calculated and recorded, although no tax is calculated. To ensure that no tax is calculated, enter zero (0) in the field.

Select the tax exempt code that specifies the reason for the sales tax exemption. This field is available if your company configuration includes sales tax jurisdictions.

Select to indicate that your company, not the vendor, is responsible for calculating and paying use tax on the purchase. This field is available if your company configuration includes sales tax jurisdictions. For more information, see Use Tax.

Enter the sales tax codes that are attached to the sales tax group.

The drop-down list presents all relevant sales tax codes from the form.

Note Note

If the sales tax group is set up with sales tax jurisdictions, sales tax codes cannot be selected directly in this field, but must attached to each jurisdiction in the form.

Select if sales tax is not calculated for the selected sales tax code that is attached to the sales tax group.

In some cases, the tax base must be calculated and recorded, although no tax is calculated. To ensure that no tax is calculated for a specific customer or vendor, select this field on the sales tax group that you attach to that customer or vendor.

Note Note

If the tax exemption is related to the item (a single occurrence for the customer or vendor), create a sales tax code with zero (0) in the field. Then create a sales tax group that contains this sales tax code and an item sales tax group that contains the same "zero-tax" sales tax code. Use these sales tax groups on the transaction.

Select the tax exempt code that specifies the reason for the sales tax exemption.

This code follows the transaction. View all posted sales tax transactions, including transactions for which sales tax has expressly not been calculated, in the form.

Select to post the sales tax calculated for this sales tax code on the sales tax group to the ledger account that is defined for sales tax payable.

Select to indicate that your company, not the vendor, is responsible for calculating and paying use tax on the purchase. For more information, see Use Tax.

Enter the percentage or amount of tax that is calculated for the sales tax code.

See Also