See Tax Codes.

For the Philippines, tax codes are not only important for calculating the correct tax amount, but they are also used for selecting the correct transactions when you create value-added tax (VAT) reports.

When you create a company code using the template for the Philippines, the system sets up all tax codes required as follows:

In Customizing for Financial Accounting, you can define additional tax codes with additional tax details for each tax procedure. To do so, choose Financial Accounting Global Settings ® Tax on Sales/Purchases ® Calculation ® Define Tax Codes for Sales and Purchases.