After setting up tax rates, you can create tax profiles. A tax profile is a taxation plan built from a collection of tax rates and applicability criteria. At checkout, the system determines which tax profile the client meets the applicability criteria for, and charges them tax based on that tax profile.
Tax Profile Building Blocks
A tax profile contains the following building blocks:
Applicability criteria: Determines which clients the tax profile applies to, and at which facilities.
Applicable tax rates: The tax rates to be included. Each tax rate is to be placed in one of the following sections to determine how the final tax total will be calculated:
Compounding groups of tax rates: Taxes that compound in a specified order.
Final compounding tax rates: Taxes that are calculated from the subtotal plus all compounding tax rates from above.
Non-compounding tax rates: Taxes that are calculated from the subtotal only and do not contribute to any compounding calculations.
Tax Profile Order
The system can only apply one tax profile to a client at checkout. If a client meets the applicability criteria for multiple tax profiles, the system will select the first applicable one (the one with the lowest order number).