Define Tax Liability

Explanation

Use this activity to create user-defined tax liability types. 

A user-defined tax liability must be linked to one of the three system-defined tax liability types, which are Taxable, Exempt, and Surcharge. These three types determine the nature of tax liability when they are linked to a customer, supplier, or company. Taxable indicates that the entity is liable for tax. Exempt indicates that the entity is not liable to pay tax. Surcharge indicates that the entity is liable for both normal tax and surcharge tax.

Prerequisites

There are no prerequisites.

System Effects

As a result of this activity, reports and invoice documents will be affected by the country-specific tax liabilities.

Window

Tax Liabilities

Related Window Descriptions

Tax Liabilities

Procedure

1. Open the Tax Liabilities window.
2. Create a new record and enter a name for the user-defined tax liability.
3. Use the List of Values to select the country to which the tax liability applies.
4. Use the List of Values to select the liability type to which the user-defined tax liability should be linked.
5. Save the information.