QAD 2017 Enterprise Edition > User Guides > Global Tax Management > Implementing GTM > Setting Up Tax Zones
  
Setting Up Tax Zones
Tax zones identify geographic regions subject to the same set of tax types and levels of tax reporting. They apply to all domains in the database.
All business relations, customers, suppliers, and site address records belong to a tax zone based on geographical elements associated with the address. For sales, purchasing, and other transactions, the system uses tax zones to determine the tax environment.
Before setting up tax zones, ensure that the proper geographical codes have been defined to support the required zones:
• Country codes are defined in Country Create (36.1.3.1) during base system implementation. See QAD Financials User Guide.
Additional operational data can be defined in Country Code Data Maintenance (2.14.1). Specify the default code for most tax zone records in Global Tax Management Control (29.24).
• State/province and county codes are other basic address elements used to determine the correct tax zone for an address. Ensure the proper codes have been defined in State Create (36.1.3.2) and County Create (36.1.3.3).