Defining and assigning tax usage codes for VAT Return Reports

If the reporting country's VAT Return Report requires statistical information on specific categories of goods purchased (for example, new means of transportation), you must define a usage code for each category required on your VAT Return Report that applies to your Accounts Payable tax transactions. You assign a tax usage code at the vendor or vendor location level when the vendor is created in the Accounts Payable application. When an Accounts Payable tax transaction is created for this vendor or vendor location, the tax usage code is passed on to the tax transaction record.

For manual tax transactions, the tax usage code is assigned at the transaction level.

These optional procedures give instructions for defining and assigning tax usage codes for companies that must file VAT Return Reports.