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Administrator Guide
Last Updated: 2023-06-23
Set Up Tax Categories

Set Up Tax Categories

Security:
Set Up: Tax
 domain in the Common Financial Management functional area.
You can create tax categories to group tax rates with the same attributes. Examples:
  • Withholding tax.
  • Value-added tax (VAT).
  • Vertex.
  • Avalara.
  1. Access the
    Maintain Tax Categories
     task.
  2. As you complete the task, consider:
    Option Description
    Subject to Recoverability
    Select this check box to calculate the recoverable tax amount for the tax rates in this tax category. Examples:
    • VAT.
    • Goods and services tax.
    Withholding Tax
    Select this check box to calculate withholding taxes for spend and revenue transactions. See Steps: Set Up Withholding Taxes.
    Use Third Party Tax Service
    Select this check box when you use a third-party service to calculate taxes on your transactions.