Example of Using Tax Zones in Tax Rules

For the European Community (EC) or the European Union (EU), it's important to know whether goods and services are being delivered within the EC.

Use the tax zone functionality to create a tax zone that defines the membership of the EC and the dates on which a country became a member.

The following scenario describes the use of a partial condition set that you can use within tax rules to define when a delivery is being made to an EC from the United Kingdom.

Scenario

Use geography as the determining factor class, ship-to as the class qualifier, and all economic communities and country as the determining factors of the tax zone type as shown in the following table:

Determining Factor Class	Class Qualifier	Determining Factor Name
User-defined geography	Ship-to	Economic Regions
Geography	Ship-to	Country
Geography	Ship-from	Country

Create the condition set as follows:

Determining Factor Class	Class Qualifier	Determining Factor Name	Operator	Value
User-defined geography	Ship-to	Economic Regions	Equal to	European Economic Community
Geography	Ship-to	Country	Not equal to	United Kingdom
Geography	Ship-from	Country	Equal to	United Kingdom

You can use this combination of determining factors in any situation where you need to identify the deliveries that are made from the UK to other EU countries.