Setting Up Tax Explanation Codes for GST

Tax Explanation codes control how GST is assessed and how it is distributed to the general ledger revenue and expense accounts. A code of V (value-added tax) is used for GST transactions (both taxable supplies, and zero-rated goods or services), and a code of E (value-added tax exempt) can be used for GST-free transactions. (Alternatively, you can set up a GSTFREE tax rate or area, or both.)