<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tc/onlinemanual/000073" xml:lang="en">
   <Header>
      <Title>Tax calculation and registration through the tax provider</Title>
      <Keyword type="header" order="d1e1141948">
         <Level1>Tax calculation</Level1>
         <Level2>sales tax</Level2>
      </Keyword>
      <Keyword type="header" order="d1e1141953">
         <Level1>Tax calculation</Level1>
         <Level2>tax provider</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>For sales tax , the tax
		amounts are calculated on order line and invoice line level.</Paragraph>
      <Paragraph>If you use a tax
		provider, the tax provider calculates the tax amounts and passes the calculated
		tax amounts to LN for
		posting to the general ledger and for the updates of the business partner order
		balances. LN only uses
		the tax code to determine the tax posting data.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>The tax provider register</SectionTitle>
      <List>
         <ListIntro>The tax provider computes the tax amounts and stores the
		  amounts in the tax provider registers, as well as other data. You can use this
		  data to track and report the tax amounts. The tax register includes the
		  following types of information:</ListIntro>
         <ListItem>The transaction type</ListItem>
         <ListItem>The document number or
		  invoice number</ListItem>
         <ListItem>The invoice date</ListItem>
         <ListItem>The tax amount
		  contributable to the tax jurisdiction</ListItem>
      </List>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Registration of tax amounts</SectionTitle>
      <List>
         <ListIntro>The tax provider automatically updates the tax provider
		  register for the following transactions:</ListIntro>
         <ListItem>Final invoices generated in <GUIRef href="/baanerp/ci" role="package">Invoicing</GUIRef>.</ListItem>
         <ListItem>Manually created invoices in the <GUIRef href="/baanerp/tf/acr" role="module">Accounts Receivable</GUIRef> module if they are finalized.</ListItem>
      </List>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>For other financial transactions such as manually created
		  journal entries, you must use the <GUIRef href="/baanerp/tc/tax/tctax6212m000" role="session">Tax Provider Calculation Utility (tctax6212m000)</GUIRef> session to calculate the tax
		  amounts and update the tax provider register.</Paragraph>
      </Note>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Computing the tax amount</SectionTitle>
      <Paragraph>If you use a tax provider, the tax provider calculates the tax
		for a number of transactions and documents created in LN. The tax amounts
		are calculated per line.</Paragraph>
      <List>
         <ListIntro>The most important transactions and documents are:</ListIntro>
         <ListItem>Sales invoices</ListItem>
         <ListItem>Purchase contracts</ListItem>
         <ListItem>Purchase orders</ListItem>
         <ListItem>Purchase invoices</ListItem>
         <ListItem>Project bids</ListItem>
         <ListItem>Sales quotations, orders, and contracts</ListItem>
         <ListItem>Service contracts and contract quotations</ListItem>
         <ListItem>Service orders</ListItem>
      </List>
      <List>
         <ListIntro>The tax provider computes the applicable tax amount from:</ListIntro>
         <ListItem>The tax jurisdiction.</ListItem>
         <ListItem>The taxable amount.</ListItem>
         <ListItem>The order type, for
		  example, sales, or service.</ListItem>
         <ListItem>The type of product sold
		  or purchased.</ListItem>
      </List>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>For transactions and documents other than sales invoices
		  created in <GUIRef href="/baanerp/ci" role="package">Invoicing</GUIRef> and in the <GUIRef href="/baanerp/tf/acr" role="module">Accounts Receivable</GUIRef> module, the tax provider calculates
		  the tax amount without updating the tax provider register.</Paragraph>
      </Note>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Determining the tax jurisdiction</SectionTitle>
      <List>
         <ListIntro>The tax provider determines the tax jurisdiction for each
		  order from:</ListIntro>
         <ListItem>The ship from address.</ListItem>
         <ListItem>The ship to address.</ListItem>
         <ListItem>The point of order
		  acceptance.</ListItem>
      </List>
   </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/000450" role="manual">Address hierarchy for sales tax calculations</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>