How to Set Up a Sales Tax Area in Business Central

In this video, UG Expert Amanda Mayer demonstrates how to set up a sales tax area in Dynamics 365 Business Central.

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00:27 — When setting up Tax Groups, they should be created as simply as possible. In her video, Amanda creates three Tax Groups — taxable, non-taxable, and use tax for the U.S. She builds her tax jurisdictions based on the tax rates applicable for the area in which she is taxing.

01:29 — Amanda sets up tax jurisdictions for the city of Milwaukee, filling out the tax details and adding them to the G/L account, too. She sets a jurisdiction to “report to” before filling out the city tax. Next, she adds each of those jurisdictions and Tax Group code combinations to come up with the full tax rate that is required.

06:28 — In the U.S., Amanda ensures that the tax rate is calculated and posted to the expense, and she demonstrates how to do that.

07:48 — The final piece is putting it all together in a Tax Area.