Create a VAT zone

Before you proceed

Before you create a VAT zone, make sure that all required VAT rates (that is, those to be added to the VAT zone) have been created in the system.

1. Go to the VAT zones (TX206000) window.
2. In the VAT zone ID field, enter the unique ID for the VAT zone being created.
3. Optional: In the Description field, enter a clear and detailed description of the zone.
4. Optional: In the Default VAT category field, select the default VAT category for the VAT zone. If the VAT category is not specified in the document (for example: in the invoice), the system determines the VAT zone of the supplier or customer and uses the VAT category specified here for tax calculation.
5. On the Applicable VAT tab, click . In the VAT ID column, select a VAT for the VAT zone being created. (The system fills in the other columns of the row automatically once you select the VAT.) Repeat this step for each VAT that you want to add.
6. Click .

The VAT zone is now created in the system. Now you can set this zone for a customer on the Delivery settings tab of the Customers (AR303000) window or for a supplier on the Purchase settings tab of the Suppliers (AP303000) window.