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<ManualTopic ID="/baanerp/tc/onlinemanual/000449" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">To set up sales tax</Title>
		<Keyword><Level1>Tax</Level1>
			<Level2>Destination sales tax</Level2>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>Before you can set up the tax registration, you must define the necessary data for <Link href="/baanerp/tc/glossary/glossary#000421" role="glossary">sales tax</Link>. For details, refer to <Link href="/baanerp/tc/onlinemanual/000438#sales" role="generalsection">Sales tax prerequisites</Link>
		</Paragraph>
	</GeneralSection>
	<GeneralSection><ProcedureList><ListTitle>To set up sales tax</ListTitle>
			<ListIntro>To set up sales tax, take the following steps:</ListIntro>
			<ListItem>Select the <GUIRef href="/baanerp/tc/com/tccom0000s000#tccom999.dstx" role="formfield">Destination Sales Tax Applicable</GUIRef> check box in the <GUIRef href="/baanerp/tc/com/tccom0000s000" role="session">COM Parameters (tccom0000s000)</GUIRef> session.</ListItem>
			<ListItemHead>Set up the tax codes and other tax details</ListItemHead>
			<ListItem><Paragraph>Set up the required tax codes and tax rates as described in <Link href="/baanerp/tc/onlinemanual/000441" role="manual">To set up tax codes by country</Link>. For sales tax, you must usually set up multiple tax rates.</Paragraph>
				<Paragraph>Define tax codes for the lowest level tax jurisdiction that you must report. For example, if sales tax is levied by the city, the county, and the state, you must define tax codes for the cities. If no sales tax is levied by the city level, but county and state sales tax apply, you can define tax codes for the counties.</Paragraph>
				<Paragraph>If you use a tax provider, SSA ERP only uses the tax codes to determine the ledger accounts to which the tax amounts are posted. SSA ERP sets all tax codes to singular tax during implementation of the tax-provider interface. The tax provider determines the tax rates and the jurisdictions.</Paragraph>
			</ListItem>
			<ListItemHead>Assign the tax codes to the GEO codes of the destination addresses</ListItemHead>
			<ListItem><Paragraph>If you do not use a tax provider, SSA ERP uses the GEO code of the ship-to address to determine the tax code of a transaction.</Paragraph>
				<Paragraph>In the <GUIRef href="/baanerp/tc/mcs/tcmcs1136m000" role="session">Tax Codes by GEO Code (tcmcs1136m000)</GUIRef> session, assign the tax codes to ranges of GEO codes per country.</Paragraph>
				<Paragraph>For tax codes used for purchases, you can select the <GUIRef href="/baanerp/tc/mcs/tcmcs1136m000#tcmcs136.drpi" role="formfield">Direct Pay Indicator</GUIRef>. If a direct pay exempt reason applies to a purchase transaction, SSA ERP uses the <GUIRef href="" role="enum" Update="No">Direct Pay</GUIRef> tax code for the transaction.</Paragraph>
			</ListItem>
			<ListItemHead>Define tax exceptions and exemptions</ListItemHead>
			<ListItem><List><ListIntro>Use the following sessions, as applicable:</ListIntro>
					<ListItemHead><GUIRef href="/baanerp/tc/mcs/tcmcs1138m000" role="session">Exceptions for Taxes (tcmcs1138m000)</GUIRef>
					</ListItemHead>
					<ListItem>To define tax code exceptions by ship-from or ship-to business partner and item or item group.</ListItem>
					<ListItemHead><GUIRef href="/baanerp/tc/mcs/tcmcs1139m000" role="session">Exceptions by Tax Location (tcmcs1139m000)</GUIRef>
					</ListItemHead>
					<ListItem>To define exceptions by ship-from address GEO code and order acceptance address GEO code.</ListItem>
					<ListItemHead><GUIRef href="/baanerp/tc/tax/tctax1170m000" role="session">Tax Exceptions for Service Transactions (tctax1170m000)</GUIRef>
					</ListItemHead>
					<ListItem>To define exceptions for the GEO codes of service order delivery addresses.</ListItem>
					<ListItemHead><GUIRef href="/baanerp/tc/tax/tctax1175m000" role="session">Tax Exceptions for Service Contracts (tctax1175m000)</GUIRef>
					</ListItemHead>
					<ListItem>To define exceptions for the GEO codes of work site addresses.</ListItem>
				</List>
			</ListItem>
			<ListItemHead>Define exemptions</ListItemHead>
			<ListItem><Paragraph>For exemptions, you must define <GUIRef href="/baanerp/tc/domains/mcs.rstp#tax.exem" role="enum">Tax Exemption</GUIRef> reasons in the <GUIRef href="/baanerp/tc/mcs/tcmcs0105m000" role="session">Reasons (tcmcs0105m000)</GUIRef> session.</Paragraph>
				<List><ListIntro>To set up tax exemptions, use the following sessions, as applicable:</ListIntro>
					<ListItem><GUIRef href="/baanerp/tc/mcs/tcmcs1142m000" role="session">Tax Exemptions for Sales (tcmcs1142m000)</GUIRef>
					</ListItem>
					<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>
			</ListItem>
			<ListItemHead>Test the tax structure</ListItemHead>
			<ListItem>Use the <GUIRef href="/baanerp/tc/mcs/tcmcs1199m000" role="session">Test Tax Structure (tcmcs1199m000)</GUIRef> session to verify that you defined the tax codes correctly. You can enter various transaction details and GEO code address information. SSA ERP displays the most specific tax code that results from the search path through the default tax codes, tax code exceptions, and tax code exemptions.</ListItem>
		</ProcedureList>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<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/000073" role="manual">Sales tax calculations</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
