If a G/L account is tax-relevant, you have to enter a tax on sales/purchases code in each line item posted to this account. In Europe, all revenue and expense accounts are usually tax-relevant.

The tax is usually entered in the customer item and the tax code from this item is transferred to the G/L account item.

Depending on the way you process your invoices, you enter either the gross or net amount and the tax code in the G/L account item.