GTM Example illustrates the interaction of the tax elements. A German automobile manufacturer exports luxury cars to the United States. U.S. tax rates depend on the class of the vehicle. For example, the rate for luxury cars is 30% in the United States; it is 20% in Mexico.

Germany, U.S., and Mexico are tax zones, in different domains. The automobile manufacturer is a customer tax class subject to the U.S. import tax. Luxury cars are an item tax class. This data is all defined system wide and available for use in all domains in the database.

The sales order tax environment associates the import tax with the order, and GTM selects the domain-specific tax rate based on the item tax class for luxury cars.