Tax Regions

Tax Regions represent a geographic area that share a common set of taxes for goods and services. Taxes for a Tax Region may be regulated by one or more taxing authorities.

The Tax Region Not Applicable is a setting that disables all taxation for goods and services for a particular Account. Use this setting only if goods and services are not taxed for any reason across all customers in the geographic region. An example of this is the state of Oregon which does not have a sales tax.

The difference between setting the Tax Region to Not Applicable and choosing No for Taxable on an Account has to do with setting up tax rates and sales tax reporting:

Choosing Not Applicable for Account Tax Region
- No taxes have to be configured
- There is no reporting of Sales Tax
Choosing No for Account Taxable
- Taxes have to be configured
- Customer should supply documentation for tax exempt status
- Sales tax for taxable and non-taxable sales are reported.