What's the minimum setup to enable a tax for transactions or simulation?

You must complete the required minimum setup before you can enable a tax for simulation or for transactions.

For a country-level standard tax with no recovery, here's the minimum setup:

• Enter the required information in the Create Tax or Edit Tax pages.

• Enter direct tax rule defaults for Place of Supply, Tax Registration, Tax Calculation Formula, and Taxable Basis Formula.

• Set the Tax Applicability to Applicable.

• Enter indirect tax rule defaults for Tax Jurisdiction, Tax Status, and Tax Rate.

• Enter tax accounts for Tax Expense and Tax Recoverable or Liability Account. Accounts you specify at the tax level appear as defaults at the tax rate and tax recovery rate level.

For country-level standard tax with tax recovery, you must complete these setups also:

• Define a tax recovery rate.

• Enter an indirect tax rule default for Tax Recovery Rate.

You might want to set the direct tax rule default for Tax Applicability as Not Applicable. In this case, you must also define a determining factor set, condition set, and tax applicability rule.