QAD 2017 Enterprise Edition > User Guides > Global Tax Management > Implementing GTM > Setting Up Tax Rates
  
Setting Up Tax Rates
GTM tax rate records enable you to configure the software to support many different kinds of taxes and transaction conditions. The rates are domain-specific since the types of taxes relevant to each of your distinct business units are likely to vary widely.
The major points to consider are listed here. Not all decisions apply to all tax types in all countries.
• The tax type, tax class, tax usage, and starting/ending date range to which the tax rate applies (See Implementing Special Taxes.)
• The percentage used to calculate tax
• Whether taxes are calculated by line or by transaction total
• The taxable base, or item amount subject to tax
• The minimum/maximum item amounts subject to tax
• The amount of purchase tax that is recoverable against sales tax
• The tax calculation method
• Whether a user can override system-calculated tax amounts
• Whether tax amounts are reverse-calculated from item amounts that already include tax
• The GL accounts and sub-accounts to which tax amounts involving this tax rate are posted
• Whether the tax on purchased items sold as part of a service contract are absorbed rather than collected
• Whether purchase tax amounts are retained and paid directly to the government rather than remitted to suppliers
• Whether purchase taxes are accrued for GL reporting upon receipt of goods or the supplier invoice
• Whether taxes are based on sales minus credit terms discounts or on the full sales amount
• The tax groups and tax boxes required for regulatory reporting
Note: Set up tax rates by tax class or tax usage only for exception conditions. Otherwise, leave these fields blank so that the system can apply the tax rate to as many transactions as possible.
Before you set up tax rate records, define the following default values in Global Tax Management Control (29.24). See Setting Up GTM Control. For more information on these fields, see the indicated pages:
• Tax-By-Line (here)
• Tax Method (here)
• Update Tax Allowed (here)
• Accrue Tax at Receipt (here)
• Accrue Tax at Usage (here)
• Discount Tax at Invoice (here)
• Discount Tax at Payment (here)
• Tax Comment Type (here)
You can later override these values for individual tax rates. Subsequent changes to the control program do not update existing rates.