Conditional sales tax
Conditional sales tax is a sales tax that is paid proportionally to the actual amount that is paid on an invoice.
Conversely, standard sales tax is calculated at invoicing time.
Conditional sales tax must be paid to the sales tax authority when the payment is posted, not when the invoice is posted. When the invoice is posted, the transaction must be reported on the sales tax book report. However, the transaction must be excluded from the sales tax payment report.
If you select the Conditional sales tax check box in the General ledger parameters page, no sales tax can be deducted until you have paid the invoice. This is a legal requirement in some countries or regions.
When you select the Conditional sales tax option, you need to set up sales tax codes and sales tax groups, and then create ledger posting groups to support the functionality.
You can configure conditional sales tax on the General ledger parameters page by navigating to General ledger > Ledger setup > General ledger parameters.
