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Object documentationTax Groups - Setup Window Locate this document in the navigation structure


Use this window to define your company's tax groups.

To open this window, choose   Administration   Setup   Financials   Tax   Tax Groups  .

Tax Groups – Setup Window
Code, Name

Specify a code and name for the tax group.


Select to indicate that the tax group is inactive. Once the tax group is set as inactive, you cannot select it in any new or draft document. By default, the checkbox is not selected.


Select one of the two tax groups:

  • Output Tax – tax groups for A/R documents

  • Input Tax – tax groups for A/P documents


Select this option if the tax group is used for transactions with other European Union countries (relevant only for Output Tax groups).

Note Note

This field is not available for Japan and Korea.

End of the note.
Triangular Deal, Goods Shipment, Service Supply

Select Goods Shipment, Triangular Deal, or Service Supply. These three fields are mutually exclusive.

Note Note

These fields are not available for Japan and Korea.

End of the note.

This column is relevant only for Input Tax groups (A/P). Select this option to define the tax group as pertaining to Acquisition / Reverse.

Specifying the acquisition tax is a procedure used when you record goods purchased from EU countries. Tax is not calculated in the document, but the correct amount is recorded in the journal entry and affects the tax report. In this case, the tax amount in the rows and in the total of the A/P invoice would be 0.

Note Note

The unique structure of a journal entry that involves acquisition tax is supported only by the creation of purchasing documents such as A/P invoices or A/P down payment invoices. Acquisition tax codes are not available for selection in manual journal entries.

End of the note.

Note Note

This field is not available for Japan and Korea.

End of the note.
Effective from, Rate

The values displayed in these columns represent the date from which a tax group rate (%) is effective.

Since the tax percentage may change from time to time, you can create additional entries by double-clicking the row number of the tax group and defining them in the Tax Definition window.

Note Note

The tax amounts in the documents are calculated according to the tax group's effective date.

End of the note.
Non Deduct. %

The rate of tax that was paid but not allowed as a deduction. The calculation of the non-deductible amount is based on the tax amount. Relevant only for Input tax groups (A/P).

Example Example

Rate of input tax group: 16%

Rate of non-deductible: 4%.

When creating an A/P invoice for total amount of 100, the amount of total tax is 16 from which 0.64 (=4%*16) is the non-deductible amount and 15.36 is deductible.

End of the example.

When using a tax group defined as non-deductible, the total amount of tax is divided between the tax account and the non-deductible tax account.

Note Note

The Acquisition/Reverse and Non Deductible definitions are mutually exclusive.

End of the note.
Non Deduct. Acct

Specify the account to which you want to post the non-deductible tax amounts.

Tax Account

Specify a G/L account to use in journal entries containing this tax group.

Acquisition Tax

Specify a G/L account to use in journal entries containing an acquisition tax.

Note Note

This field is not available for Japan and Korea.

End of the note.
Group Description

Use this informative field to enter values, which could be used later as parameters in user queries.

Country-Specific Field: Spain
Equalization Tax %

Specify the equalization tax percent for each relevant tax group.

Equalization Tax Account

Specify a G/L account to be used for posting the equalization tax amount in the journal entries for this tax group.


Select this checkbox if the tax code is related to the Canary Islands.

This checkbox is visible only if Extended Tax Reporting is selected in the company details (see Initializing Tax Reporting According to Model 340).

Country-Specific Fields: Belgium & Portugal

Defines a tax group as a correction tax group in the system.

VAT Correction

From the dropdown list, select the tax group you want to assign as the correction tax group for the current tax group.

Country-Specific Field: Korea
Report Type

Specify a report type for the tax invoice report.

Note Note

Once you have maintained all the tax report types, choose OK to save your data.

End of the note.
Country-Specific Filed: Italy
Tax Type (Black List)

From the dropdown list, specify the tax type (black list) for each tax code. Excluded means that the tax code is not relevant for the blacklist country report.