Sales tax groups (form)

Article
10/09/2018

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Click General ledger > Setup > Sales tax > Sales tax groups.

Use this form to create and manage the sales tax groups that determine the sales tax and duty calculation for customers, vendors, or ledger accounts.

Sales tax rates frequently depend on the geographic location and the kind of business transaction that occurs. Therefore, customers or vendors who have similar tax requirements are assigned the same sales tax group, which contains the appropriate sales tax codes, and customers who have different tax profiles are assigned different sales tax groups. For example, domestic and foreign customers are sometimes taxed at different rates and require different sales tax groups, and some customers are exempt from sales tax, whereas others are not.

The sales tax groups are associated with sales tax codes, or, for some U.S. organizations, with sales tax jurisdictions that contain the sales tax codes.

Tasks that use this form

Set up and use a sales tax group

Set up sales tax groups for jurisdictions

Set up taxes for online stores based on destination

Navigating the form

The following tables provide descriptions for the controls in this form.

Tabs

Tab	Description
General	Create or view sales tax groups.
Jurisdiction setup	Enter the sales tax jurisdictions that apply to the sales tax group. This tab is available only if you select Sales tax jurisdictions in the Sales tax group setup field, and then press CTRL+S to save.
Setup	Add or remove sales tax codes for the tax group.
Destination based tax	Specify geographic areas for applying destination-based sales taxes in retail online stores. Note This control is available only if Microsoft Dynamics AX 2012 R2 or AX 2012 R3 is installed.

Button

Button	Description
Recalculate tax	Recalculate sales taxes on transactions that have not been journalized, to reflect changes to the sales tax code.

Fields

Field	Description
Sales tax group	Enter a unique identifier for the sales tax group.
Description	Enter a name that describes the sales tax group.
Country/region or state	Enter the name of the country/region or state that the tax applies to. This name is used to sort sales tax groups.
County/purpose	Enter the county or purpose that the tax is for.
Reverse sales tax on cash discount	Select this check box to enable the reversal of sales tax on cash discounts for the selected sales tax group. When you create a sales tax group, this check box is selected or cleared according to the value in the Reverse sales tax on cash discount field in the General ledger parameters form. You can select or clear this check box for individual sales tax group. Example A sale in the amount of 100.00 has a 10% tax of 10.00, for a total of 110.00. The customer received a 2% cash discount for early payment. If you select this check box, the sales tax of 10.00 is automatically reversed by 2% of 10.00, or 0.20.
Sales tax group setup	Select the basis on which taxes for the sales tax group are calculated. If you select Sales tax jurisdictions, the Jurisdiction setup FastTab is displayed, and you must complete the setup of the sales tax group in the fields on this FastTab. If you select Sales tax jurisdictions, you cannot change the sales tax codes on the Setup FastTab, because each sales tax jurisdiction is set up with specific sales tax codes. You can change the sales tax codes that are included in a sales tax jurisdiction in the Sales tax jurisdictions form. Note If you make changes in a sales tax jurisdiction and you want the changes to apply to a sales tax group, delete the outdated sales tax jurisdiction on the sales tax group, and then add the updated sales tax jurisdiction.
Rounding by	Select the rounding principle that applies to the taxes of the sales tax group. This field is available if your legal entity configuration includes sales tax jurisdictions. Sales tax codes – The rounding for the sales tax code is used. See the value in the Round-off field in the Sales tax codes form. Sales tax code combinations – The rounding for the sales tax code combination that is attached to each invoice line is used.
Print	Select how the sales taxes will be displayed on the printed invoice. Sales tax codes – The sales taxes are organized by sales tax code. Sales tax groups – The sales taxes are organized by sales tax group. No details – No sales tax details are displayed on the invoice. You might select this option for sales tax groups that are based on sales tax jurisdictions for which you have selected the Exempt check box on the Jurisdiction setup FastTab. Note Depending on the invoice layout, the itemized tax amounts are in the body or in the footer of the invoice. In the default setup that can be modified in the Form setup form for customer invoices or the Form setup form for vendor invoices, the itemized taxes are in the footer of the invoice. If you are complying with EU115 legislation, you can print tax codes on each line of an invoice. To do this, select Print code in the Print field in the Sales tax codes form.
Sales tax jurisdiction code	Select a tax jurisdiction code that applies to the selected sales tax group. Note This field is available only if you select Sales tax jurisdictions in the Sales tax group setup field.
Name	The name of the tax jurisdiction code. Note This field is available only if you select Sales tax jurisdictions in the Sales tax group setup field.
Exempt	Select this check box if sales tax is not calculated for the sales tax jurisdiction code that is attached to the sales tax group. In some cases, the tax base must be calculated and recorded, although no tax is calculated. To make sure that no tax is calculated, enter 0 in the Percentage/Amount field. Note This field is available only if you select Sales tax jurisdictions in the Sales tax group setup field.
Exempt code	Select the tax exempt code that specifies the reason for the sales tax exemption. Note This field is available only if you select Sales tax jurisdictions in the Sales tax group setup field.
Use tax	Select to indicate that your legal entity, not the vendor, is responsible for calculating and paying use tax on the purchase. Note This field is available only if you select Sales tax jurisdictions in the Sales tax group setup field.
Sales tax code	Select the sales tax code for the sales tax group. The list includes all relevant sales tax codes from the Sales tax codes form. Note If the sales tax group is set up with sales tax jurisdictions, sales tax codes cannot be selected in this field, but must added to each jurisdiction in the Sales tax jurisdictions form.
Name	The name of the sales tax code.
Exempt	Select this check box if sales tax is not calculated for the selected sales tax code for the sales tax group. In some cases, the tax base must be calculated and recorded, although no tax is calculated. To make sure that no tax is calculated for a specific customer or vendor, select this check box for the sales tax group that you use for that customer or vendor. Note If the tax exemption is related to the item (a single occurrence for the customer or vendor), create a sales tax code with 0 entered in the Percentage/Amount field. Then create a sales tax group that contains this sales tax code and an item sales tax group that contains the same zero-tax sales tax code. Use these sales tax groups on the transaction.
Exempt code	Select the tax exempt code that specifies the reason for the sales tax exemption. This code follows the transaction. You can view all posted sales tax transactions, including transactions for which sales tax has expressly not been calculated, in the Posted sales tax form.
Intra-community VAT	Select to post the sales tax that is calculated for this sales tax code on the sales tax group to the ledger account that is defined for sales tax payable. Note (ESP) This control is available only to legal entities whose primary address is in Spain.
Use tax	Select this check box to indicate that your legal entity, not the vendor, is responsible for calculating and paying use tax on the purchase.
Percentage/Amount	Enter the percentage or amount of tax that is calculated for the sales tax code.