Tax Rate (TX03.1)
Use Tax Rate (TX03.1) to define tax rates and assign them to tax codes. Tax rates are independent of your company, making it easier for you to change tax rates in the future.
Processing Effect
You can define several tax rates for the same tax code with different effective dates. Effective dates determine which tax rate for the tax code should be applied to the transaction. When you enter a transaction and apply a tax code to it, the application compares the transaction date to the most recent tax rate effective date on or before the transaction date to decide which tax rate to apply.