Setting up a Tax Group

Some countries allow related companies or those with certain financial, economic and organizational links to register as a single taxable entity – a VAT group or GST group. Depending upon the tax laws of the particular country, this may mean that you don't need to account for VAT/GST on goods and services supplied between group members.

To create a VAT/GST tax group:

• Make sure that all companies in the group have the same Tax Registration Number and Tax Country Code.
• Select the VAT/GST Group checkbox on all companies in the group.
• Make sure that all accounts have the same Tax Registration Number and Tax Country Code as defined at company-level.
• Create a tax code with a zero rate and use it as the Output VAT/GST Code on all customer accounts.
• Create a tax code with a zero rate and use it as the Input VAT/GST Code on all vendor accounts.

See About Tax for the effect of this on VAT/GST tax calculations.

Note:

Note

If you associate a customer or vendor account in the group with a tax code that has a non-zero tax rate, that rate will be used. There is no validation that enforces a zero rate in this scenario for non-intercompany accounts.