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<ManualTopic ID="/baanerp/difffp3/tc/onlinemanual/000040Diff61FP3" xml:lang="en">
   <Header>
      <Title>Tax exemptions</Title>
      <Keyword type="header" order="d1e206048">
         <Level1>Differences Infor LN FP3</Level1>
         <Level2>Tax exemptions</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>Differences between Infor LN FP2 and Infor LN FP3.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Tax exemptions</SectionTitle>
      <Paragraph>Transactions with specific business partners, involving specific
		goods, and/or with their origin or destination in certain countries or areas,
		can be exempt from tax. Sales invoices for transactions that are exempt from
		tax must have zero tax amounts.</Paragraph>
      <Paragraph>Some enterprises are exempt from sales tax within the
		jurisdiction of certain tax authorities. Invoices for sales to a customer with
		a valid tax exemption must have zero tax amounts. If you are exempt from sales
		tax, your suppliers must not include the tax amount on their invoices.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Infor LN FP2</SectionTitle>
      <List>
         <ListIntro>In Infor LN FP2 you set up tax exemptions in the following sessions:</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 Purchase (tcmcs1560m000)</GUIRef>
         </ListItem>
         <ListItem>
            <GUIRef href="/baanerp/tc/mcs/tcmcs1561m000" role="session">Register Warehouse for Tax Exemptions (tcmcs1561m000)</GUIRef>
         </ListItem>
      </List>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Infor LN FP3</SectionTitle>
      <Paragraph>In Infor LN FP3, you can define tax exemptions using the same sessions in which
		you define <Link href="/baanerp/tc/glossary/glossary#000419" role="glossary">tax code exceptions</Link>. The separate <GUIRef href="/baanerp/tc/mcs/tcmcs1142m000" role="session" Update="No">Tax Exemption</GUIRef> sessions are expired.</Paragraph>
      <Paragraph>In addition, LN no longer supports transactions without a tax code. For tax
		exemption, you must define tax codes with zero tax rates in the <GUIRef href="/baanerp/tc/mcs/tcmcs0136s000" role="session">Tax Codes by Country (tcmcs0136s000)</GUIRef> session.</Paragraph>
      <List>
         <ListIntro>To support the new way to set up tax exemptions, the following
		  changes were made:</ListIntro>
         <ListItemHead>
            <GUIRef href="/baanerp/tc/tax/tctax0100m000" role="session">Tax Parameters (tctax0100m000)</GUIRef>
         </ListItemHead>
         <ListItem>
            <Paragraph>In the new <GUIRef href="/baanerp/tc/tax/tctax0100m000#tctax000.telv" role="manual">Tax Exempt Level</GUIRef> field, you must select the tax exemption setup method,
			 which can be <GUIRef href="/baanerp/tc/domains/tax.telv#limited" role="option">Limited</GUIRef> or <GUIRef href="/baanerp/tc/domains/tax.telv#extended" role="option">Extended</GUIRef>. Use <GUIRef href="/baanerp/tc/domains/tax.telv#extended" role="option">Extended</GUIRef> if you want to specify <Link href="/baanerp/tc/glossary/glossary#000332" role="glossary">tax exemption certificates</Link> and exempt reasons.</Paragraph>
            <Paragraph>The number of <GUIRef href="/baanerp/tc/tax/tctax0100m000#tctax000.sro1" role="manual" Update="No">Search Order</GUIRef> fields was extended. The available search
			 order options include tax exemption and, in addition, separate options
			 represent exceptions and exemptions defined in the <GUIRef href="/baanerp/tc/tax/tctax1100m000" role="session">Tax Exceptions by Country (tctax1100m000)</GUIRef> and the <GUIRef href="/baanerp/tc/tax/tctax1101m000" role="session">Tax Exceptions by Country Set (tctax1101m000)</GUIRef> session.</Paragraph>
         </ListItem>
         <ListItemHead>
            <GUIRef href="/baanerp/tc/tax/tctax0138m000" role="session">Tax Handling (tctax0138m000)</GUIRef>
         </ListItemHead>
         <ListItem>For the <GUIRef href="/baanerp/tc/domains/tax.telv#limited" role="option">Limited</GUIRef> tax exemption setup method, you can select the
		  exempt tax code for the various tax order origins per country in this session.
		  For orders for which you select the <GUIRef href="" role="manual" Update="No">Tax Exempt</GUIRef> check box in the order header, LN uses the exempt tax code.</ListItem>
         <ListItemHead>
            <GUIRef href="/baanerp/tc/tax/tctax1100m000" role="session">Tax Exceptions by Country (tctax1100m000)</GUIRef> and <GUIRef href="/baanerp/tc/tax/tctax1101m000" role="session">Tax Exceptions by Country Set (tctax1101m000)</GUIRef>
         </ListItemHead>
         <ListItem>For the <GUIRef href="/baanerp/tc/domains/tax.telv#extended" role="option">Extended</GUIRef> tax exemption setup method, you can enter the
		  transaction details of orders to which the exempt tax code applies as well as
		  the business partner's exempt certificate and the exempt reason. Based on the
		  transaction details, LN determines whether the exempt tax code applies to an order.</ListItem>
         <ListItemHead>
            <GUIRef href="/baanerp/tc/mcs/tcmcs1560m000" role="session">Tax Exemptions for Purchase (tcmcs1560m000)</GUIRef>
         </ListItemHead>
         <ListItem>Use this session to link a text to the reason code for a purchase tax
		  exemption for a tax code and country combination. LN prints the text on
		  orders and invoices. In this way, you can link several tax exempt reasons with
		  different texts to a single tax code by country combination.</ListItem>
      </List>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000452" role="manual">To set up tax exemptions</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>