If you charge taxes on sales to customers, you enter all the necessary tax information in the customer record. Accounts Receivable automatically calculates all applicable taxes when you enter transactions for the customer.
When you specify tax information on the A/R Customers screen, you first select the tax group that includes the taxing authorities, classes, and rates that apply in the customer's geographical area.
Then, you select the tax class for each authority that indicates the type of sales on which the authority charges tax to the customer.
If the customer has a tax-exemption number or a registration number, such as for the Canadian Goods and Services Tax (GST), you also enter it for the corresponding tax class. You can print this number on invoices and statements for the customer.
Note: You set up tax groups and other tax information using the Tax Services screens.