Setup step on the Sales tax codes page · Tax

Set up Sales tax codes

Used to hold the tax rates and calculation rules for each sales tax, and to link the tax to a settlement period and a ledger posting group.

Used by: Auditor, Chief executive officer, Accounts receivable manager and 5 more roles
Business process: Configure tax rates in Dynamics 365 Finance
Menu item: TaxTable
Main table: TaxTable
Data entity: TaxCodeEntity
Setup steps: 1 on this page

Show what matters for

Everyone

1What it is and why

What it is	A setup page where you create a sales tax code for each indirect tax or duty that the legal entity must calculate, collect and pay to sales tax authorities.
What you do here	Used to hold the tax rates and calculation rules for each sales tax, and to link the tax to a settlement period and a ledger posting group.
Example	For example, with a 25 percent sales tax code that uses Percentage of net amount, an invoice line of 10 items at 1.00 each with a 10 percent line discount has a net amount of 9.00 and sales tax of 2.25.

Sales tax codes page in Dynamics 365 — The page in a working Dynamics 365 system. page title tab to open what to set or check

Functional consultant · Solution architect

2Where it fits

Business process	Define accounting policies › Develop tax strategy › Configure tax rates in Dynamics 365 Finance
Menu path	Tax › Indirect taxes › Sales tax › Sales tax codes
Set up first	Sales tax settlement periods Microsoft Learn ↗Ledger posting groups Microsoft Learn ↗Sales tax reporting codes Microsoft Learn ↗
Used next by	Sales tax groups Microsoft Learn ↗Item sales tax groups Microsoft Learn ↗Posted sales tax Microsoft Learn ↗
Related pages	Sales tax codes report Microsoft Learn ↗
In this process	Set up Sales tax groups →

End user · Functional consultant

3How to do it

Step by step, with screenshots

Set up Sales tax codes1 screen

Used to hold the tax rates and calculation rules for each sales tax, and to link the tax to a settlement period and a ledger posting group.

Screen 1
Create the sales tax code
Go to Tax > Indirect taxes > Sales tax > Sales tax codes
1. Select New, and enter the Sales tax code and Name
2. On the General section, select the Settlement period and Ledger posting group, then save
3. On the Action Pane, select Sales tax code > Values
4. Enter the From date, To date and Value, then save and close
1Sales tax code BEAT-ST10
2Settlement period BEAT-QTR
3Ledger posting group BEAT-ST
4Percentage/Amount 10.00000
Show the full screen
page title tab to open what to set or check

1Sales tax code	BEAT-ST10
2Settlement period	BEAT-QTR
3Ledger posting group	BEAT-ST
4Percentage/Amount	10.00000

Microsoft's steps

Go to Tax > Indirect taxes > Sales tax > Sales tax codes.
Select New.
In the Sales tax code field, enter a code, and in the Name field, enter a name.
Select the Settlement period, which sets the sales tax authority and how often the tax is reported and paid.
Select the Ledger posting group that holds the main accounts the tax posts to.
Expand the Calculation FastTab and fill in the fields that control how the tax amount is calculated.
On the Action Pane, select Sales tax code > Values.
Enter the rate in the Value column, then save and close the page.

Source: Microsoft Learn ↗

Field guide

Field	What it means	Worked example	Table column
Settlement period	Sets which sales tax authority the tax is reported to and how often it is reported and paid.Microsoft Learn ↗	BEAT-QTR	—
Ledger posting group	Sets the main accounts that the sales tax posts to in the general ledger.Microsoft Learn ↗	BEAT-ST	—
Origin	The calculation method applied to the tax base, such as a percentage of the net amount or an amount per unit.Microsoft Learn ↗	—	—
Sales tax on sales tax	The other sales tax code that this tax is calculated on, when Origin is Percentage of sales tax.Microsoft Learn ↗	—	`TaxOnTax`
Calculation method	Whether the rate applies to the whole taxable amount or to each amount interval separately.Microsoft Learn ↗	—	`TaxCalcMethod`
Marginal base	Which amount is used to pick the right rate from the sales tax code values.Microsoft Learn ↗	—	—
Values	The tax rate or amount per unit, by effective dates and by minimum and upper limits.Microsoft Learn ↗	—	—
Limits	The minimum and maximum sales tax that can be calculated on a sale.Microsoft Learn ↗	—	—
Type of tax	The kind of tax, such as Standard VAT, Reduced VAT or VAT 0%, used with the Tax service and multiple VAT registration numbers.Microsoft Learn ↗	—	—
Report setup	The sales tax reporting codes that each type of amount on this code is reported under.Microsoft Learn ↗	—	—
Sales tax code	—	BEAT-ST10	—
Percentage/Amount	—	10.00000	—

Functional consultant

4Setup decisions

Setup step	Recommended value and why	Decision · common mistake · test
Set up Sales tax codes	—	—

Solution architect

5Design impact

Shared or per company	Per company: each legal entity has its own records. Microsoft data model ↗
Can it be undone	—
Feature or country	—
If you change it later	When advanced tax calculation is turned on in Tax calculation parameters, the rounding rules set on sales tax codes no longer apply. Microsoft Learn ↗

Technical architect

6Technical

Menu item	`TaxTable` Checked in Dynamics 365
Form	`TaxTable` Checked in Dynamics 365
Table	`TaxTable`Shown as “Sales tax codes” in Record infoKey field: TaxCodeChecked in Dynamics 365
Data entities	`TaxCodeEntity`Sales tax codes Microsoft data model ↗
Who can open it	PrivilegesQuery other tax settings `RPayOtherTaxSettingsQuery`Maintain sales tax codes `TaxTableMaintain`View sales tax codes `TaxTableView`DutiesEnable payroll process `HcmPayrollProcessEnable`Enable EU sales list process `TaxEUSalesListProcessEnable`Review EU sales list process performance `TaxEUSalesListProcessPerfReview`Enable sales taxes process `TaxSalesTaxesProcessEnable`Inquire into sales tax policies `TaxSalesTaxPoliciesInquire` 8 security roles Auditor `AuditPolicyManager`Chief executive officer `CompanyChiefExecutiveOfficer`Accounts receivable manager `CustInvoiceAccountsReceivableManager`Payroll administrator `HcmPayrollAdministrator`Accountant `LedgerAccountant`Accounting manager `LedgerAccountingManager`Accounting supervisor `LedgerAccountingSupervisor`Financial controller `LedgerFinancialController` Checked in Dynamics 365
Actions on the page	Sales tax code: Sales tax code, Inquiries, Print, Recalculate taxOptions: Personalize, Page options, ShareChecked in Dynamics 365

Developer

7Developer

Open it directly	`https://<your-environment>/?mi=TaxTable`
Integrate with	`TaxCodeEntity` data entity Microsoft data model ↗
Table definition	`TaxTable` columns and relations Microsoft data model ↗