Creating Tax Rate by Search Definitions (T)

In some countries, not all states or regions share the same rate of taxes for goods and services. For example, the ICMS tax rate for alcoholic beverages in Rio de Janeiro is 20%, while in Sao Paulo, the rate is 25%. When goods are transferred from one state to another, different tax rates will be applied by the producer state and consumer state.

You can use the Search Definitions for Tax Rate to define the appropriate tax rates based on Tax Types, Origin of transaction (Input/Output), and rates for Insterstate transactions.

  1. Expand Tax Engine applications > Tax Search Data.
  2. Select Search Definitions > Tax Rate by Search Definitions.
  3. Click the New View icon.
  4. Specify this information:
    Transaction Origin

    Select Input or Output.

    Tax Type

    Select a tax type from the list.

  5. Click the New icon.
  6. Specify information in the generic fields of the Features tab.

    For more information on each field, see Search Definition fields.

  7. In the Grouping Code field, search and select a grouping code. Click OK.
  8. In the [%] Rate section, specify values in the % Rate field and Percentage Fund Combat Poverty field.

    Express the tax rate as a percentage and not as the decimal equivalent. For example, type 12 percent (%) as 12. The value appears as 12.000000.

  9. Click the Save icon.