Setting up Sales and Use Tax in Microsoft Dynamics 365 Business Central
What is a tax jurisdiction and tax area? There are two major steps to setting up sales and use tax in Business Central. The first is tax jurisdictions and the second is tax areas. A tax jurisdiction is a city, county, state, or other special tax that requires taxes within its limits. A tax area is a physical area, and each area can be assessed taxes by different jurisdictions. Tax Jurisdictions You're going to want to setup a new jurisdiction per city, county, state, or other special tax. I'm going to use zip code 80470 for an example. I pulled the following information from online and it shows that for zip code 80470 there are four jurisdictions totaling 4.5% sales tax. Source: 80470 Sales Tax Rate (2022) - Avalara Setting up Tax Jurisdictions in Business Central Search for tax jurisdictions Click on +New Complete the information in the new row. In this case I left Default Sales and Use Tax percentage as 0 since I have several tax groups codes setup. Select the line and the
