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<ManualTopic ID="/baanerp/tc/onlinemanual/000441" xml:lang="en">
   <Header>
      <Title>To set up tax codes by country</Title>
      <Keyword type="header" order="d1e1139302">
         <Level1>Tax</Level1>
         <Level2>tax codes</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>To set up tax codes for value added tax and sales tax, take the
		following steps:</Paragraph>
      <ProcedureList>
         <ListItem>In the <GUIRef href="/baanerp/tc/mcs/tcmcs0137m000" role="session">Tax Codes (tcmcs0137m000)</GUIRef> session, define a tax code for each type of tax,
		  including tax types with zero tax amounts.</ListItem>
         <ListItem>
            <List>
               <ListIntro>In the <GUIRef href="/baanerp/tc/mcs/tcmcs0136s000" role="session">Tax Codes by Country (tcmcs0136s000)</GUIRef> session, set up the tax details, among others:</ListIntro>
               <ListItem>Assign the tax codes to the home country of the financial
				company.</ListItem>
               <ListItem>Specify whether the tax consists of a single tax rate or
				of multiple tax rates, for example, for sales tax.</ListItem>
               <ListItem>Optionally link a <Link href="/baanerp/tc/glossary/glossary#TaxAuthor_tc" role="glossary">tax authority</Link> to the tax code. For details, refer to <Link href="/baanerp/tc/onlinemanual/000081" role="manual">Tax authorities</Link>.</ListItem>
               <ListItem>If required, add a text to the tax codes containing the
				reference to the applicable tax law chapter. LN prints the text on
				invoices with this tax code.</ListItem>
            </List>
            <Paragraph>For consumption tax, enter the details as described in <Link href="/baanerp/tc/onlinemanual/000410" role="manual">Consumption tax</Link>.</Paragraph>
         </ListItem>
         <ListItem>For a singular tax code, define the tax rate in the <GUIRef href="/baanerp/tc/mcs/tcmcs0132m000" role="session">Single Tax Rates (tcmcs0132m000)</GUIRef> session. You can choose <GUIRef href="/baanerp/tc/mcs/tcmcs0536m000#single.tax.rates" role="manual">Single Tax Rates</GUIRef> from the <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate</Link> menu of the <GUIRef href="/baanerp/tc/mcs/tcmcs0536m000" role="session">Tax Codes by Country (tcmcs0536m000)</GUIRef> overview session.</ListItem>
         <ListItem>
            <List>
               <ListIntro>For multiple tax codes, for example, for <Link href="/baanerp/tc/glossary/glossary#000421" role="glossary">sales tax</Link>, take the following steps:</ListIntro>
               <ListItem>Specify the details in the <GUIRef href="/baanerp/tc/mcs/tcmcs0535m000" role="session">Multiple Tax Code Lines (tcmcs0535m000)</GUIRef> session. You can choose <GUIRef href="/baanerp/tc/mcs/tcmcs0535m000#multiple.tax.rates" role="command">Multiple Tax Rates</GUIRef> from the <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate</Link> menu of the <GUIRef href="/baanerp/tc/mcs/tcmcs0536m000" role="session">Tax Codes by Country (tcmcs0536m000)</GUIRef> overview session.</ListItem>
               <ListItem>Define the tax rates of each tax code line in the <GUIRef href="/baanerp/tc/mcs/tcmcs0133m000" role="session">Multiple Tax Rates (tcmcs0133m000)</GUIRef> session. You can choose <GUIRef href="/baanerp/tc/mcs/tcmcs0535m000#multiple.tax.rates" role="command">Multiple Tax Rates</GUIRef> from the <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate</Link> menu of the <GUIRef href="/baanerp/tc/mcs/tcmcs0535m000" role="session">Multiple Tax Code Lines (tcmcs0535m000)</GUIRef> overview session.</ListItem>
            </List>
         </ListItem>
         <ListItem> 
            <List>
               <ListIntro>Specify the ledger accounts to which LN must post the tax
				amounts, for each financial company. In each financial company of your system,
				use the following sessions:</ListIntro>
               <ListItem> 
                  <GUIRef href="/baanerp/tf/gld/tfgld0571m000" role="session">Posting Data for Single Tax Codes (tfgld0571m000)</GUIRef> for single tax codes.</ListItem>
               <ListItem> 
                  <GUIRef href="/baanerp/tf/gld/tfgld0570m000" role="session">Posting Data for Multiple Tax Codes (tfgld0570m000)</GUIRef> for multiple tax codes.</ListItem>
            </List>
         </ListItem>
         <ListItem>If you prepare tax declarations based on a tax declaration
		  master, you must also define a <Link href="/baanerp/tc/glossary/glossary#000436" role="glossary">tax settlement</Link> tax code for the country. LN links the <GUIRef href="/baanerp/tc/domains/ktax#tax.settlement" role="option">Tax Settlement</GUIRef> tax code to the payments you make to the collection office.
		  On the tax analysis reports, this tax code represents the tax payments.</ListItem>
         <ListItemHead>Approve the tax codes</ListItemHead>
         <ListItem>
            <Paragraph>Ensure that all the tax code details are correct, and in the <GUIRef href="/baanerp/tc/mcs/tcmcs0136s000" role="session">Tax Codes by Country (tcmcs0136s000)</GUIRef> session, select the <GUIRef href="/baanerp/tc/mcs/tcmcs0136s000#tcmcs036.appr" role="manual">Approved</GUIRef> check box. LN performs a
			 consistency check on the tax code details.</Paragraph>
            <Paragraph>Before you can add a tax code to a group tax code or test
			 the tax model, you must approve the tax codes. LN can only link
			 approved tax codes to the transactions.</Paragraph>
            <List>
               <ListIntro>After you approve the tax code, you can no longer change
				the following details:</ListIntro>
               <ListItem>
                  <GUIRef href="/baanerp/tc/mcs/tcmcs0136s000#tcmcs036.ktax" role="manual">Kind of Tax</GUIRef>
               </ListItem>
               <ListItem>
                  <GUIRef href="/baanerp/tc/mcs/tcmcs0136s000#tcmcs036.tvat" role="manual">Tax Type</GUIRef>
               </ListItem>
               <ListItem>
                  <GUIRef href="/baanerp/tc/mcs/tcmcs0136s000#tcmcs036.smpl" role="manual">Singular Tax</GUIRef>
               </ListItem>
               <ListItem>
                  <GUIRef href="/baanerp/tc/mcs/tcmcs0136s000#tcmcs036.extx" role="manual">Expensed Purchase Tax</GUIRef>
               </ListItem>
               <ListItem>
                  <GUIRef href="/baanerp/tc/mcs/tcmcs0136s000#tcmcs036.gtax" role="manual">Group Tax</GUIRef>
               </ListItem>
               <ListItem>
                  <GUIRef href="/baanerp/tc/mcs/tcmcs0136s000#tcmcs036.txcg" role="manual">Tax Category</GUIRef>
               </ListItem>
               <ListItem>
                  <GUIRef href="/baanerp/tc/mcs/tcmcs0136s000#tcmcs036.invb" role="manual">Include In VAT Book</GUIRef>
               </ListItem>
            </List>
         </ListItem>
      </ProcedureList>
   </GeneralSection>
   <GeneralSection>
      <Paragraph>Continue with <Link href="/baanerp/tc/onlinemanual/000437" role="manual">To set up the tax rates</Link>.</Paragraph>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000031" role="manual">Setting up tax registration</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>