Setting up a Custom Tax Code for a new Tax Jurisdiction

Overview

This article outlines the steps to create a new tax jurisdiction with specified tax components and tax codes. A typical use case is when a company wants to apply a particular tax code for orders originating from different countries based on the taxation regimes in those jurisdictions.

Information

1. Create a Tax Component as outlined in Setting Up Tax Components
   
   Note: The Tax Account Code represents the account in the Chart of Accounts that will be credited when tax is collected from the customer using a tax code. Once saved, this field cannot be modified.
2. Set up the Tax Code for the specific location as described in Setting Up Tax Codes
   
   Note: The tax code is not selected automatically because Everest determines the Sales jurisdiction based on the Customer Shipping address and the logged-in jurisdiction of the user. Users can however select the desired tax code manually if the default one is not applicable.
3. Create a Tax Jurisdiction as outlined in Setting Up Jurisdiction
   Refer to the below flowchart which outlines how Everest determines the tax jurisdiction:
   

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