Tax Zones

Form ID: (TX206000)

On this form, you can create, view, and modify tax zones. A tax zone combines the taxes that are effective in a particular territory. The tax zones are usually defined according to the locations of the vendors or customers.

Form Toolbar

The form toolbar includes only standard buttons. For the list of standard buttons, see Form Toolbar and More Menu.

Summary Area

In the Summary area, you can specify information for a new tax zone. You can also select an existing tax zone to view or edit the list of individual taxes and zip codes.


Element	Description
Tax Zone ID	The unique identifier for a zone, which is up to ten alphanumeric characters.
Description	A more detailed description of the zone.
Default Tax Category	Optional. The default tax category for the tax zone. If a tax category is not defined in the document, the tax category specified here will be used by default for a tax zone.
External Tax Provider	A check box that indicates (if selected) that this tax zone is used for setting up tax calculation by using an external tax provider (for example, the Avalara AvaTax service). When you select this check box, the Provider ID and Tax Agency ID boxes appear below it. This check box appears on the form only if the External Tax Calculation Integration feature is enabled on the Enable/Disable Features (CS100000) form. For details, see Integrating MYOB Acumatica with External Tax Providers.
Provider ID	The unique identifier of the external tax calculation provider. This box appears on the form if the External Tax Provider check box is selected.
Tax Agency ID	The tax agency account that you have created for using it with the external tax calculation provider, such as the Avalara AvaTax service. You specify this tax agency account for the tax zone dedicated for the tax service. The tax zone, in turn, should be specified for the applicable customers. This tax agency provides the default GL accounts that will be used for posting amounts calculated by the tax provider's service. This box appears on the form if the External Tax Provider check box is selected. The list of vendors available for selection may be limited based on the role or roles assigned to the user account to which you are signed in if the Customer and Vendor Visibility Restriction feature is enabled on the Enable/Disable Features (CS100000) form. In this case, the Restrict Visibility To box appears on the Financial tab of the Vendors (AP303000) form. With the feature enabled, a vendor is available for selection if one of the following is true: The Restrict Visibility To box is empty for the vendor—that is, the vendor’s visibility is not restricted. A branch, company, or a company group is specified in the Restrict Visibility To box for the vendor, and your user account has the role specified in the Access Role box of the Configuration Settings section of one of the following: the Branch Details tab of the Branches (CS102000) form for the selected branch, or the Company Details tab of the Companies (CS101500) form for the selected company or a company within the company group.
Calculate in AP	Specifies how the system should process the taxes returned from Avalara. One of the following values can be selected: Use Taxes: The taxes in AP documents will be processed as use taxes. This is the default value for new tax zones. Sales Taxes: The taxes in AP documents will be processed as sales taxes. This box appears on the form if the External Tax Provider check box is selected in the Summary area. For details, see Online Integration with Avalara AvaTax.

Applicable Taxes Tab

This tab contains the list of taxes of the selected tax zone.

The table toolbar includes only standard buttons. For the list of standard buttons, see Table Toolbar.


Column	Description
Tax ID	The unique identifier of the tax. Other columns in the row will display information about the selected tax.
Description	The description of the selected tax.
Tax Type	The type of tax, which can be Sales, Use, VAT, or Withholding.
Calculation Rule	The method of calculating the tax amount. One of the following options can be selected: Inclusive Line-Level: The tax amount is included in item amounts and should be extracted. Exclusive Line-Level: This is a first-level tax calculated on item amounts. Compound Line-Level: This is a second-level tax calculated on item amounts and the amounts of the first-level-taxes. Exclusive Document-Level: This is a first-level tax calculated on the document amount, not on a per-item basis. Compound Document-Level: This is a second-level tax calculated on the document amount and the amount of the first-level tax.
Cash Discount	The method of calculating the taxable amount if a discount is applied (based on the credit terms). One of the following options can be selected: Reduces Taxable Amount: The discount is taken on the total amount calculated for the document. The taxable amount is decreased by the discount. Does Not Affect Taxable Amount (default option): The discount is taken on the document total, but the tax is also calculated on the document total. The taxable amount is not affected by the discount.
Direct-Entry Tax	Read-only. This check box indicates (if selected) that the tax in this row is a direct-entry tax and it will be applicable only on the following forms: Bills and Adjustments (AP301000) Cash Purchases (AP304000) Landed Costs (PO303000) Tax Bills and Adjustments (TX303000) For details, see Direct Tax Payment: General Information.

Ship-To Addresses Tab

On this tab, you can specify the criteria for automatic assignment of the selected tax zone on data entry forms. A tax zone can be defined based on combinations of country, state, and postal code; ranges of postal codes can be specified.

When you enter a new record on the current tab, depending on the Tax Zone Is Based On setting, the system validates the new entry as follows:

If Countries is selected, when you add a country to the list of the tax zone's countries, the system verifies that there is no tax zone with Countries selected in the Tax Zone Is Based On box that has the same country in the list of the tax zone's countries.
If States is selected, when you add a state to the list of the tax zone's states, the system verifies that there is no tax zone with States selected in the Tax Zone Is Based On box that has the same state in the list of the tax zone's states.
If Postal Codes is selected, when you add a postal code range to the list on the current tab, the system verifies that there is no tax zone with Postal Codes selected in the Tax Zone Is Based On box with the same country that has a postal code range that overlaps with the newly added postal code range.

If you modify a record on the current tab, the system performs the same validation, but without taking into account the record that is being modified.

Table 1. Ship-To Addresses Elements
Box	Description
Tax Zone Is Based On	The setting on based on which the tax zone in documents is assigned. One of the following options can be selected: Countries (default): The tax zone is based on any number of countries. If you select this option, the Country box on this tab becomes unavailable. To add each country in the tax zone, you should click Add Row on the table toolbar and select the country from the list in the Country column. States: The tax zone is based on any number of states of a specific country. If you select this option, the Country box on this tab becomes available. You should select a country in the Country box; you then add each state in the tax zone by clicking Add Row on the table toolbar and selecting the state in the list in the State column. Postal Codes: The tax zone is based on any number of ranges of postal codes within a specific country. If this option is selected, the Country box on this tab is available. You should select a country in the Country box and then add each range of postal codes in the tax zone by clicking Add Row on the table toolbar and entering the needed values in the From Postal Code and To Postal Code columns.
Country	The ID and name of the country from which states or postal codes are entered in the table. This box is available if States or Postal Codes is selected in the Tax Zone Is Based On box.

The table toolbar includes only standard buttons. For the list of standard buttons, see Table Toolbar.

Table 2. Table
Column	Description
Country	The country ID. This column appears in the table if Countries is selected in the Tax Zone Is Based On box above the table on this tab.
Name	The country name. This column appears in the table if Countries is selected in the Tax Zone Is Based On box above the table on this tab.
State	The state ID. This column appears in the table if States is selected in the Tax Zone Is Based On box above the table on this tab.
Name	The state name. This column appears in the table if States is selected in the Tax Zone Is Based On box above the table on this tab.
From Postal Code	The starting postal code in the range of postal codes. This column appears in the table if Postal Codes is selected in the Tax Zone Is Based On box above the table on this tab.
To Postal Code	The ending postal code in the range of postal codes. This column appears in the table if Postal Codes is selected in the Tax Zone Is Based On box above the table on this tab.