Configure the Taxes application

Before you configure the Taxes application, see Taxes application overview to learn more about single and multiple tax jurisdictions so that you can select the installation option that best suits your needs.

Also, see Set up taxes overview to see all the tasks required to set up a tax solution.

Configure Taxes

The Configure Taxes page has fewer options for a standard company than for a multi-entity company.

Configure Taxes for a single entity company

In a single entity company, you select one tax solution to use for capturing and reporting tax for a single tax jurisdiction.

1. Go to Taxes > Setup > Configuration.
   If you do not see Taxes in the menu, make sure that the Taxes application has been enabled (go to Company > Admin > Subscriptions) and you have the appropriate Taxes permissions.
2. In the Single tax jurisdiction dropdown menu, select the tax solution you want to use.
3. Click Save.

Before any user creates transactions with tax implications, ensure that the tax solution you selected is configured and the other setup tasks are completed so that tax is captured correctly.

To learn more, see Set up taxes overview.

Configure Taxes for a multi-entity company

In a multi-entity organization, your business structure determines if you need to capture and report tax according to the rules of one or more tax jurisdictions:

• If your business operations and entities are within a single country, you generally only need to comply with the rules of that country, using the same tax solution for each entity.
• If your business operations and entities are in more than one country, you most likely need to comply with the rules of each country, using different tax solutions for the entities that are not in the same country.

You can start with a single tax solution and, as your needs grow, switch to using multiple tax solutions.

1. Go to Taxes > Setup > Configuration.
   If you do not see Taxes in the menu, make sure that the Taxes application has been enabled (go to Company > Admin > Subscriptions) and you have the appropriate Taxes permissions.
2. Select whether you need tax support for multiple tax jurisdictions or for a single tax jurisdiction. If you select a single tax jurisdiction, select the tax solution that will be used for all your entities:
   • Australia GST
   • Canadian Sales Tax - SYS
   • Deutsche Umsatzsteuer - SYS
   • Ireland VAT - SYS
   • New Zealand GST - SYS
   • Singapore GST - SYS
   • South Africa VAT
   • TVA Française - SYS
   • United Kingdom VAT
   • Custom VAT
     
3. Select Save.
   If you configured Taxes for a single tax jurisdiction, the tax solution you selected is the only tax solution that appears on the Tax Solutions page.

   If you configured Taxes for multiple tax jurisdictions, the following tax solutions appear on the Tax Solutions page:

   • Australia GST: [Not configured] Preinstalled tax solution for Australia
   • Canadian Sales Tax - SYS: [Not configured] Preinstalled tax solution for Canada
   • Deutsche Umsatzsteuer - SYS: [Not configured] Preinstalled tax solution for Germany
   • Ireland VAT - SYS: [Not configured] Preinstalled tax solution for the Republic of Ireland (EA only)
   • New Zealand GST - SYS: [Not configured] Preinstalled tax solution for New Zealand (EA only)
   • No Tax: Preinstalled tax solution for no tax
   • Singapore GST - SYS: [Not configured] Preinstalled tax solution for Singapore (EA only)
   • South Africa GST: [Not configured] Preinstalled tax solution for South Africa
   • TVA Française - SYS: [Not configured] Preinstalled tax solution for France
   • United Kingdom VAT: [Not configured] Preinstalled tax solution for United Kingdom

   You can edit the unconfigured tax solutions to customize them and add tax solutions for custom VAT, Advanced Tax, and Avalara AvaTax.

Before users create transactions with tax implications, ensure that you have configured the tax solution (single tax jurisdiction) or tax solutions (multiple tax jurisdictions) and that the other setup tasks are completed so that tax is captured correctly.

To learn more, see Set up taxes overview.

Grant tax permissions

To configure tax solutions or submit taxes using the integration with Sage Regulatory Reporting, users need the appropriate permissions. These are the tax permissions:

• Tax Solutions. Grant this permission to the users who will configure tax solutions in your organization.
• Tax Submissions. Grant this permission to the users who will prepare and submit the tax returns. For standard tax solutions, Intacct sends the tax information to Sage Regulatory Reporting, where the tax returns are calculated. For custom tax solutions, you can create tax submissions to submit manually.

Learn more about granting permissions to users.

Field descriptions

The following table describes each item in the Configure Taxes page:

Option	Description
Multiple tax jurisdictions	This option appears only for multi-entity organizations. Select this option if you have entities in more than one country and you need to capture and report tax according to the rules of multiple tax jurisdictions. After you save the page, you cannot come back and select Single tax jurisdiction.
Single tax jurisdiction	This option appears for both standard companies and multi-entity organizations. Select the tax solution to use to calculate and capture tax: Australia GST Canadian Sales Tax - SYS Deutsche Umsatzsteuer - SYS Ireland VAT - SYS (Early Adopter only) New Zealand GST - SYS (Early Adopter only) Singapore GST - SYS (Early Adopter only) South Africa VAT TVA Française - SYS United Kingdom VAT The selected tax solution will be used for all the entities in a multi-entity organization, which is appropriate if all your entities are in the same country and you only need to comply with the rules of a single tax jurisdiction. If no transactions have been created using the selected tax solution, you can return to the page and select a different tax solution. For example, if you saved the page with Custom VAT when you meant to select Australia - GST, just come back to the page and reselect the tax solution. You can start with Single tax jurisdiction and later switch to Multiple tax jurisdictions. For example, your business might grow such that you need new entities in other countries.
Turn off government service validation of tax numbers	When you select this checkbox, a government-provided service to validate VAT and GST registration numbers for the United Kingdom, European Union countries, and Australia will not be used. When validation is left on, the service is used to validate VAT and GST registration numbers when they are entered or changed in the following areas: The company Entities (in a multi-entity environment) Contacts, customers, and suppliers The service is also used to validate VAT and GST registration numbers for the customer ship-to contact when invoices are posted in Accounts Receivable and Order Entry. For the United Kingdom and the European Union countries, a VAT registration number is successfully validated when the number is recognized as VAT registered and active. For Australia, an Australian Business Number (ABN) is successfully validated when it's recognized as active. Whether it's GST registered does not matter. Best practice: Leave the government validation service turned on to improve integration with invoice generation and reporting.
Turn off tax detail filtering	The taxes application filters tax details in transaction line items to show only tax details for the selected contact. Turn off tax detail filtering to show all tax details for a tax solution. This allows users to override the derived tax details for transaction line items,