<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tc/onlinemanual/000453" xml:lang="en">
   <Header>
      <Title>The Limited method to set up tax exemptions</Title>
      <Keyword type="header" order="d1e1151769">
         <Level1>Tax</Level1>
         <Level2>tax exemptions</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <ProcedureList>
         <ListIntro>To set up tax exemptions using the <GUIRef href="/baanerp/tc/domains/tax.telv#limited" role="option">Limited</GUIRef> method, use the following sessions:</ListIntro>
         <ListItemHead>
            <GUIRef href="/baanerp/tc/mcs/tcmcs0136s000" role="session">Tax Codes by Country (tcmcs0136s000)</GUIRef>
         </ListItemHead>
         <ListItem>Define and approve the exempt tax codes as described in <Link href="/baanerp/tc/onlinemanual/000441" role="manual">To set up tax codes by country</Link>. The tax rate must be zero percent. If a
		  reference to the tax law must be printed on the invoice, link a text to the tax
		  code.</ListItem>
         <ListItemHead>
            <GUIRef href="/baanerp/tc/tax/tctax0138m000" role="session">Tax Handling (tctax0138m000)</GUIRef>
         </ListItemHead>
         <ListItem>Select the exempt tax codes for the various tax order origins.</ListItem>
         <ListItemHead>
            <GUIRef href="/baanerp/tc/tax/tctax0100m000" role="session">Tax Parameters (tctax0100m000)</GUIRef>
         </ListItemHead>
         <ListItem> 
            <List>
               <ListIntro>Select the following details:</ListIntro>
               <ListItemHead>
                  <GUIRef href="/baanerp/tc/tax/tctax0100m000#tctax000.telv" role="manual">Tax Exempt Level</GUIRef>
               </ListItemHead>
               <ListItem>
                  <GUIRef href="/baanerp/tc/domains/tax.telv#limited" role="option">Limited</GUIRef>, to indicate that you defined exempt tax codes for
				countries.</ListItem>
               <ListItemHead>
                  <GUIRef href="/baanerp/tc/tax/tctax0100m000#tctax000.sro1" role="manual" Update="No">Search Order</GUIRef>
               </ListItemHead>
               <ListItem> 
                  <List>
                     <ListIntro>Select one of the following values:</ListIntro>
                     <ListItem>To include the exempt tax codes in the search path for
					 the tax code, select <GUIRef href="/baanerp/tc/domains/tax.src1#standard" role="option">Standard</GUIRef> in one of the <GUIRef href="/baanerp/tc/tax/tctax0100m000#tctax000.sro1" role="manual" Update="No">Search Order</GUIRef> fields.</ListItem>
                     <ListItem>If, in addition to the tax exemptions, you define tax
					 exceptions, you must also select <GUIRef href="/baanerp/tc/domains/tax.src1#exception" role="option">Exceptions by Country</GUIRef> or <GUIRef href="/baanerp/tc/domains/tax.src1#exception.set" role="option">Exceptions by Country Set</GUIRef> in a <GUIRef href="/baanerp/tc/tax/tctax0100m000#tctax000.sro1" role="manual" Update="No">Search Order</GUIRef> field.</ListItem>
                  </List>
               </ListItem>
            </List>
         </ListItem>
         <ListItem>Use the <GUIRef href="/baanerp/tc/tax/tctax8100m000" role="session">Test Tax Model (tctax8100m000)</GUIRef> session to test the resulting tax code and tax country
		  in various situations, and make the necessary adjustments.</ListItem>
      </ProcedureList>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000452" role="manual">To set up tax exemptions</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000440" role="manual">To test the tax model</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>