Tax Calculation With or Without Jurisdiction Code? 

SAP provides two options for calculating sales tax and use tax:

One of these two options must be assigned to each country.

You choose the tax calculation without jurisdiction codes if you have business relationships with companies whose locations are restricted to few jurisdictions. You can then simply assign percentage rates to the different tax codes.

You choose tax calculation with jurisdiction codes if you have business relationships with companies whose locations have many jurisdictions, or if you expect that this will be the case in the future.

Once you have chosen one tax calculation method, you cannot reverse your decision.