Tax determination rules

Use this page to define the tax determination rules per tax category and legislation. You can update existing rules or create new rules.

Sage delivers the VAT setup with your Sage Distribution and Manufacturing Operations subscription.

The Lines grid displays the details for the tax rules.

Create a new tax rule

1. Select Create.
2. Enter or select the tax solution, tax category, and legislation. Only the legislation is required.
3. In the Lines grid, define the tax rules based on the category and legislation combination.

4. Select Add to add a new line. Each line is a rule based on the column settings.

5. Flow: Select purchase or sales.
6. Origin country group: Select an existing group for the ship-from address.
7. Origin country: Select the country for the ship-from address. A country is not available if a group was not previously set. You need to define a country group or a country.
8. Destination country group: Select an existing group for the ship-to address.
9. Destination country: Select the country for the ship-to address. A country is not available if a group was not previously set. You need to define a country group or a country.
10. Transaction type: Select one of the following to indicate the transaction type between supplier and customer: B2B, B2C, or B2B and B2C.
11. Item tax group: Select an item tax group that uses this tax rule. If you do not select a group, this tax rule applies to all item tax groups.
12. Tax: Select the tax rate for the transaction on the line. The line can be empty if the tax is not mandatory for the tax category.

Edit an existing tax determination rule

1. Select the Tax solution.
2. Select Add and follow step 4 above.
3. To delete a line, select the Delete icon on the line.