The sales tax rate changes on December 31, 2006. The rate increases from 20% in 2006 to 25% in 2007. You create a sales order on December 27 and deliver the items the next day. The invoice is printed and sent on January 5, 2007.

Your selection in the drop-down list in the form determines which tax rate is used. If you select:

  • , the sales tax is calculated at 25% of the taxable amount. (You create the invoice in 2007.)

  • , the sales tax is calculated at 20% of the taxable amount (You deliver the items in 2006).

  • , the sales tax is calculated at 20% of the taxable amount. (You create the sales order on December 27, 2006.)