Why isn't the tax applied to a transaction?

These are some of the reasons when the tax isn't applied to a transaction. You can verify and correct them as required.

• The business unit or legal entity isn't subscribed to the regime.

• The party type is incorrect. If the Use Legal Entity Subscription option is enabled for the business unit in the Party Tax profile, then for the regime subscription, you must select First Party Legal Entity as the party type instead of Business Unit Owning Tax Content.

• The applicable regime, tax, status, jurisdiction, and rate are active and aren't end dated.

• Tax applicability rules aren't created. If the tax isn't applicable by default, then you must create tax applicability rules with the required condition.