Tax Groups

A Tax Group combines a Tax Class, a Tax Region and one or more Tax Items. For any Sale or Store Credit, the Tax Class and Tax Region are used to select the Tax Group, and the Tax Items belonging to the Tax Group are used to assess the Taxes.

The Tax Group is where one specifies:

Taxes are assessed on individual Sales and Store Credits
Taxes are assess on the sum of Sales and Store Credits

Taxes are assessed at different "levels" supporting a "Tax on Tax" scenario.

Setting up taxes for Sales Tax, VoIP Tax and Internet Tax

Assume the following Tax Items:

State Sales Tax
County Sales Tax
City Sales Tax
State VoIP Tax
County Internet Tax
USF Tax

Assume the following: for a generic Tax Regions - Region A - as an example:

A sales of goods subject to "Sales Tax" will be assessed the State, County and City Sales Taxes.
A sale of goods subject to "VoIP Tax": will be assessed the State VoIP Tax and the USF Tax.
A Sale of goods subject to "Internet Tax"" will be assessed the State Sales Tax, the County Internet Tax and the USF Tax.

Three Tax Groups will be created for Region A, one for Tax Class "Sales", one for Tax Class "VoIP", one for Tax Class "Internet":

Tax Group with Tax Region "Region A" and Tax Class "Sales" will have Tax Items
- State Sales Tax
- County Sales Tax
- City Sales Tax
Tax Group with Tax Region "Region A" and Tax Class "VoIP" will have Tax Items
- State VoIP Tax
- USF Tax
Tax Group with Tax Region "Region A" and Tax Class "Internet" will have Tax Items
- State Sales Tax
- County Internet Tax
- USF Tax

These taxes and combinations of taxes are defined by the local taxing authorities. Every Sale and Store Credit created in BillMax uses the location of the Sale (Tax Region) and the type of goods sold (Tax Class) to determine which Tax Group to select to assess the various Tax Items.