Setting up a Value Added Tax master record

If your company resides in a country that requires you to collect or pay value added taxes (VAT) on products or services, you must set up your company records correctly. Use these example instructions to create a Value Added Tax master record. Your exact steps can vary.

  1. Select System Administrator > Setup > Value Added Tax.
  2. Click New.
  3. In State, specify a state, province, or country.
  4. In the General view, create a jurisdiction record for each state or province in which you do business.
  5. If the jurisdiction is part of a European Union member state, select the EC Sales option.
    Note: The VAT Rates section is not enterable if you are using one of these integrations for your interface: Sovos GTD, or AvaTax, or Vertex Cloud. These third-party solutions provide those rates.
  6. In VAT accounts, specify the General Ledger account that will be used to track Provincial Sales Tax (PST) you collected from sales made to your customers. This account records your PST liability. The account must exist in GL Account Setup. The fields displayed depend on the Tax Analysis setting in SA Company Setup-Taxes: Accrual or Cash.
  7. Click Save.
  8. In the Addons view, set up all addons, indicating their taxable status by assigning one of the Tax Groups you set up in SA Company Setup.
  9. Click Save.
  10. Repeat steps as needed for all jurisdictions.