Sales tax groups (form) [AX 2012]

Updated: August 14, 2012

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.

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

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.

NoteNote

This control is available only if Microsoft Dynamics AX 2012 R2 or AX 2012 R3 is installed.

Button

Description

Recalculate tax

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

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.

NoteNote

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.

NoteNote

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.

NoteNote

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.

NoteNote

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.

NoteNote

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.

NoteNote

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.

NoteNote

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.

NoteNote

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.

NoteNote

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.

NoteNote

(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.


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