This article provides information on how the default tax jurisdiction is determined for credit orders.
The tax Jurisdiction selected under Credit Orders is dependant on the selected customer address and the currently logged-in location of the user. See screenshot below:
Further, the workflow for Credit Order is similar to the common Sales document. The flowchart below from the Online help shows the workflow for tax jurisdiction determination:
Further information on the procedure to create Tax Jurisdictions is outlined in Setting Up Jurisdictions.