The Tax Posting Setup page is a matrix that combines VAT business and product posting groups, like the General Posting Setup page. Each combination determines the accounts that are used to post sales and purchase VAT.
For North America, the Sales Tax is calculated as a percentage of the purchase price and is added to the total amount paid by the consumer. The rate of sales tax and which goods and services are subject to it vary depending on the jurisdiction.
To manually enter a Tax posting setup line, follow these steps:
- Click the
icon, enter Tax Posting Setup, and select the relevant link. - In the VAT. Bus. Posting Group field, enter the relevant VAT business group.
- In the VAT Prod. Posting Group field, enter the relevant VAT product group to complete the combination.
- In the VAT Calculation Type field, select this option:
- Sales Tax - Use this option only if US sales tax is recorded instead of VAT.
For more information on how to set up VAT in Business Central, see Enter lines in VAT posting setup.