Defining default tax codesIn many countries, different tax rates apply to transactions within the country and transactions across country borders. In addition, special tax rules can apply to freight invoices. To define the default tax codes for the various types of transactions:
You can define default tax codes for the following types of tax: Item tax codes for domestic tax For domestic tax, you can also link default tax codes to items or item groups in the following sessions:
LN uses these tax codes if you do not define a specific domestic tax code for the item in the Tax Handling (tctax0138m000) session. Default EU VAT codes If your company's home country is a member of the European Union, you must define specific tax codes for import and export to other EU countries. Special tax rules apply to freight invoices. You can define the following default EU tax codes:
LN uses the VAT codes for intra-EU transactions if the following is true:
The tax rates for intra-EU transactions apply to the following transaction types:
Note LN uses the country that you selected for the company in the General Company Data (tccom0102s000) session to determine whether or not the company resides in an EU member country. Default tax codes for financial transactions For transactions that you create in Financials, you can link a default tax code to a ledger account. In the Chart of Accounts (tfgld0508m000) session, select the default tax code in the Default Tax Code field. For example, this is the default tax code for journal vouchers that you create for the ledger account.
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