Basic tax setup in the US version
Use the Tax Setup page to define basic tax information in [!INCLUDE [prod_short](../../includes/prod_short.md)]. Specify the tax group for nontaxable transactions and the default accounts for posting calculated tax. Then configure tax jurisdictions, tax areas, and tax details to match your company's requirements. Learn more in Sales tax in the US version.
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[!INCLUDE [prod_short](../../includes/prod_short.md)] is available in countries/regions that use value-added tax (VAT). For information about how to set up and report VAT in your country/region, see the articles in the Local Functionality section.
Set up taxes
- Choose the
icon, enter Tax Setup, then choose the related link. - On the Tax Setup page, fill in the fields. [!INCLUDE [tooltip-inline-tip_md](../../includes/tooltip-inline-tip_md.md)]
- Specify the Non-Taxable Tax Group Code to identify the tax group for nontaxable transactions.
- On the Default Accounts FastTab, specify Tax Account (Sales), Tax Account (Purchases), and Reverse Charge (Purchases) as appropriate for your transactions. These settings provide default general ledger (G/L) accounts. Tax jurisdictions also have their own tax account settings. Learn more about how to set up or edit G/L accounts in Set Up or Change the Chart of Accounts.
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If you are in the US, we recommend running the Tax Setup together with the Set Up Sales Tax assisted guide. Learn more about the guide and other important pages and fields to set up in Sales Tax in the US.