Define Tax Liability

Explanation

Use this activity to create user-defined tax liability types. 

A user-defined tax liability must be linked to one of the two system-defined tax liability types, which are Taxable and Exempt. These two types determine the nature of tax liability when they are linked to a customer, supplier, or company. Taxable indicates that the entity is liable for tax. Exempt indicates that the entity is not liable to pay tax.

Prerequisites

There are no prerequisites.

System Effects

As a result of this activity, reports and invoice documents will be affected by the country-specific tax liabilities.