What are tax types?

In China, VAT invoices are generated only for VAT, and not other tax types that may appear on receivables transaction lines. Tax types identify the applicable VAT for each line of a VAT invoice for a given legal reporting unit.

You can use the default tax types or create your own to suit your tax requirements. These are the default tax types:

• VAT: VAT for goods or services

• VAT-GOODS: VAT for goods only

• VAT-SERVICES: VAT for services only

Tax types are assigned to legal reporting units. When you transfer receivables transactions to the Golden Tax Adaptor, only VAT tax lines belonging to these tax types are selected.