<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tc/onlinemanual/000427" xml:lang="en">
   <Header>
      <Title>Tax codes for freight orders</Title>
      <Keyword type="header" order="d1e1157425">
         <Level1>Tax</Level1>
         <Level2>freight orders</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>For freight order lines and for freight invoices, LN supplies the default
		tax country and tax code. In all cases, you can manually change the tax country
		and the tax code if this is required.</Paragraph>
      <Paragraph>If the freight order concerns a transportation in the European
		Union countries, EU-specific tax codes apply.</Paragraph>
      <Paragraph>If you manually enter purchase invoices for freight orders (that
		is, the carrier's invoices) in <GUIRef href="/baanerp/tf" role="package">Financials</GUIRef>, LN displays the default tax country and default
		tax code of the freight order.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <Paragraph>If special tax rates
		apply to freight orders for transportation across country borders, you can set
		up separate tax codes for the tax on freight invoices in the <GUIRef href="/baanerp/tc/tax/tctax0138m000" role="session">Tax Handling (tctax0138m000)</GUIRef> session. In all cases in which no special tax code
		applies, LN uses the
		domestic freight tax code.</Paragraph>
      <List>
         <ListIntro>If the financial company that is linked to the enterprise unit
		  of the shipping office resides in an EU country, LN determines the tax code
		  and the tax country of the invoice for transportation across country borders as
		  described below.</ListIntro>
         <ListItem>
            <GUIRef href="/baanerp/tc/tax/tctax0138m000#tctax038.fics" role="manual">Freight ICT Sales</GUIRef> tax applies to freight cost invoices for internal and external
		  business partners.</ListItem>
         <ListItem>
            <GUIRef href="/baanerp/tc/tax/tctax0138m000#tctax038.ficp" role="manual">Freight ICT Purchase</GUIRef> tax applies to self-billed invoices for internal freight
		  costs.</ListItem>
         <ListItem>If the freight order
		  line is linked to a sales order line or a purchase order line, LN uses the
		  ship-from and ship-to address of the order line to determine the tax country
		  and the tax code.</ListItem>
         <ListItem>If no ship-from address
		  and ship-to address can be found, LN determines the tax country and the tax
		  code based on the invoice-from and invoice-to data.</ListItem>
         <ListItem>The invoice-from country is the home country of the financial
		  company that is linked to the shipping office. The invoice-to country is the
		  country of the invoice-to address.</ListItem>
      </List>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000316" role="manual">To define default tax codes</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>