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<ManualTopic ID="/baanerp/tc/onlinemanual/000105" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Sales Tax on Purchases</Title>
		<Keyword><Level1>Destination sales tax</Level1>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>Destination sales tax only applies in North America and Canada. The tax rates are determined by the local authorities in the jurisdiction where the goods or services are received or consumed. In many cases, multiple jurisdictions have authority over the same location.</Paragraph>
		<Paragraph>For example, the city, county, and state/province can each charge their own taxes and can each set their own rules for what is taxable and whether there are exceptions or maximum taxable amounts.</Paragraph>
		<GeneralSection><SectionTitle>Using a tax provider application</SectionTitle>
			<Paragraph>The destination sales-tax can consist of multiple parts and multiple rates. You can use a <Link href="/baanerp/tc/glossary/glossary#000013" role="glossary">tax provider</Link> for the tax computation.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Determining the destination location</SectionTitle>
			<Paragraph>To calculate the destination sales-tax amounts, the delivery address is used to determine the appropriate tax code. SSA ERP uses the addresses GEO code to link the delivery address to the tax code.</Paragraph>
			<List><ListIntro>If you select the <GUIRef href="/baanerp/tc/com/tccom0000s000#tccom999.itib" role="formfield">Include Tax in Order Balance</GUIRef> check box in the <GUIRef href="/baanerp/tc/com/tccom0000s000" role="session">COM Parameters (tccom0000s000)</GUIRef> session and if you use a tax provider, you must rebuild the open order balances when you change the addresses of:</ListIntro>
				<ListItem>Business partners.</ListItem>
				<ListItem>Logistic companies.</ListItem>
				<ListItem>Departments.</ListItem>
				<ListItem>Warehouses.</ListItem>
			</List>
		</GeneralSection>
		<GeneralSection><SectionTitle>Tax exceptions</SectionTitle>
			<List><ListIntro>You can define exceptions to the default tax codes for:</ListIntro>
				<ListItem>Business partners, items, and so on.</ListItem>
				<ListItem>Combinations of place of origin and destination location.</ListItem>
			</List>
		</GeneralSection>
		<GeneralSection><SectionTitle>Tax exemptions</SectionTitle>
			<Paragraph>You can use the <GUIRef href="/baanerp/tc/mcs/tcmcs1142m000" role="session">Tax Exemptions for Sales (tcmcs1142m000)</GUIRef> session to define that sold-to business partners are exempt from tax. SSA ERP will not include the tax amounts on the invoices. You must specify the customer's exemption number and a tax exemption reason.</Paragraph>
			<List><ListIntro>You can use the following sessions to specify <Link href="/baanerp/tc/glossary/glossary#000332" role="glossary">tax exemption certificates</Link> for purchases as well as for <Link href="/baanerp/tc/glossary/glossary#000333" role="glossary">direct pay</Link> tax:</ListIntro>
				<ListItem><GUIRef href="/baanerp/tc/mcs/tcmcs1560m000" role="session">Tax Exemptions for Purchasing (tcmcs1560m000)</GUIRef>
				</ListItem>
				<ListItem><GUIRef href="/baanerp/tc/mcs/tcmcs1561m000" role="session">Register Warehouse for Tax Exemptions (tcmcs1561m000)</GUIRef>
				</ListItem>
			</List>
		</GeneralSection>
		<GeneralSection><SectionTitle>Defining tax authorities</SectionTitle>
			<Paragraph>SSA ERP uses tax-authority codes and tax-authority groups to identify the jurisdiction of a specific tax code or tax code level. You can select and sort tax-analysis report data by tax-authority codes and by tax-authority groups.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Expensed purchase tax</SectionTitle>
			<Paragraph>In North America, expensed purchase tax is handled differently from the way it is handled outside North America. Refer to <Link href="/baanerp/tc/onlinemanual/000058" role="manual">Expensed purchase tax</Link> for details.</Paragraph>
		</GeneralSection>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000075" role="manual">Overview of tax handling</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000069" role="manual">To use a tax provider</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000058" role="manual">Expensed purchase tax</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000071" role="manual">Addresses, GEO codes, and tax jurisdictions</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000072" role="manual">Tax on installments</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000073" role="manual">Sales tax calculations</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
