Contact tax groups—Taxes application

Related information

Related topics

• Contacts
• How tax works in the Taxes application

When you use Advanced Tax or a tax solution in the Taxes application, contact tax groups let you apply taxes to customers, vendors, and their contacts according to their tax jurisdictions. You associate customers, vendors, and their contacts with contact tax groups. Then, you use tax schedule maps to apply different tax schedules to your contact tax groups.

You can view your list of contact tax groups in Company or Taxes.

Add a contact tax group

1. Go to Taxes > Setup > Tax groups > Contact tax groups and select Create.
2. Enter a Name for the contact tax group.
   Names must be unique and are limited to 80 characters. Space, underscore, and dash are the only special characters allowed.
3. If you enabled multiple tax jurisdictions on the Configure taxes page, select a Tax solution for the contact tax group.
4. Select Save.

1. Go to Taxes > Setup > Tax groups > Contact tax groups and select Add.
2. Enter a Name for the contact tax group.
   Names must be unique and are limited to 80 characters. Space, underscore, and dash are the only special characters allowed.
3. If you enabled multiple tax jurisdictions on the Configure taxes page, select a Tax solution for the contact tax group.
4. Select Save.

Duplicate a contact tax group

You cannot edit the name of a contact tax group. However, you can duplicate the contact tax group and then enter a different name.

1. Go to Taxes > Setup > Tax groups > Contact tax groups.
2. Find the contact tax group that you want to duplicate.
3. Select More actions > View at the end of the row.
4. Select Duplicate.
5. Enter a new Name for the contact tax group.
   Names must be unique and are limited to 80 characters. Space, underscore, and dash are the only special characters allowed.
6. Select Save.

1. Go to Taxes > Setup > Tax groups > Contact tax groups.
2. Find the contact tax group that you want to duplicate.
3. Select View.
4. Select Duplicate.
5. Enter a new Name for the contact tax group.
   Names must be unique and are limited to 80 characters. Space, underscore, and dash are the only special characters allowed.
6. Select Save.

Delete a contact tax group

You can delete a contact tax group you no longer use. After a record is deleted, it cannot be recovered.

1. Go to Taxes > Setup > Tax groups > Contact tax groups.
2. Find the contact tax group that you want to delete.
3. Select the checkbox for that contact tax group.
4. Select Delete.
5. Select OK in the delete confirmation box.

1. Go to Taxes > Setup > Tax groups > Contact tax groups.
2. Find the contact tax group that you want to delete.
3. In the Delete column, select the checkbox for that contact tax group.
4. Select Delete.
5. Select OK in the delete confirmation box.

Standard contact tax groups

Depending on the tax solution you configured in the Taxes subscription, contact tax groups that are tailored to the tax jurisdiction are automatically created. You cannot edit or delete Standard contact tax groups. You can add additional contact tax groups to meet additional business needs, if necessary.

New implementations after 1 January 2021 should not use the EC customers and EC suppliers contact tax groups. Assign customers and suppliers in EU countries to the other appropriate contact tax groups.

Download the update change log to review the standard contact tax groups for each tax solution.

Assign contact tax groups

Assign the applicable customers, vendors, and their contacts to the appropriate contact tax groups.

• For Accounts Receivable and Order Entry, the system uses the customer ship-to contact to capture tax. If the ship-to contact is the same as the primary contact, it's sufficient to mark the customer record as taxable and assign the customer to a contact tax group. If the ship-to and primary contacts differ, make sure the ship-to contact is marked as taxable and assigned to a contact tax group.
  In Accounts Receivable transactions, the contact tax group helps filter the list of tax details from which the user selects the tax category and tax rate to apply to line items.
• For Accounts Payable and Purchasing, the system uses the vendor pay-to contact to capture tax. If the pay-to contact is the same as the primary contact, it's sufficient to mark the vendor record as taxable and assign the vendor to a contact tax group. If the pay-to and primary contacts differ, make sure the pay-to contact is marked as taxable and assigned to a contact tax group.
  In Accounts Payable transactions, the contact tax group helps filter the list of tax details from which the user selects the tax category and tax rate to apply to line items.

If you change a tax solution for an entity, the contact tax groups associated with customers and vendors are invalid. You must manually update the contact tax groups for customers and vendors. The contact tax groups for the new tax solution appear in the dropdown to make selecting and updating them easier.

To learn more about how contact tax groups are used to capture tax, see Tax schedule maps.

Field descriptions

The following table describes each item in the Contact tax group information page.