Tax Codes – the Motor of VAT Determination

Tax codes provide the information tax engines, ERP’s or accounting systems need to correctly identify the right VAT, GST or sales tax rates and reporting for any transaction. Whilst there is no standard format, they are typically made-up of a collection of alpha and numerical figures. These capture the key treatments and rules needed to breakdown the VAT rates, calculations and reporting requirements for any transaction.

Source: vatcalc.com

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