Set up VAT or GST overview

The tasks that are required to set up a VAT or GST solution depend on the tax jurisdiction for your company or entity:

Standard VAT or GST tax solution: Choose from pre-configured tax solutions for Australia, Canada, France, Germany, New Zealand (EA), Republic of Ireland (EA), Singapore (EA), South Africa, and the United Kingdom.

Custom VAT or GST tax solution: Configure a custom setup of details, tax groups, schedules, and schedule maps.

Use the checklists for the appropriate tax solution to ensure that you complete the tasks needed so that taxes are captured correctly for each tax solution your organization uses.

If you configure the application for a single tax jurisdiction, you'll use one tax solution. If you configure the application for multiple tax jurisdictions, you can use two or more tax solutions.

Many setup tasks are performed by an administrator or implementer. Unless noted otherwise, complete the tasks at the top level in multi-entity organizations.

If the Taxes application is configured for multiple tax jurisdictions, the No Tax solution is automatically installed and is used as the default tax solution for every entity.

Common prerequisites

Complete the basic tasks in the following table before initiating the setup tasks for a tax solution.

Task	Description
Set the locale language for your country	The locale language determines the terminology that's displayed. Example If you select AU as the locale language, then the US term "checking account" becomes "cheque account", and in the UK locale, the US term "checking account" becomes "current account". To set the locale language, go to Company > Setup > Company. Select Edit and, in the Global settings section, select Language. For more information, see Terminology across locales.
Set the accounting method	Select Accrual only for the accounting method. The Taxes application supports accrual accounting and the accrual side of dual-method accrual and cash basis accounting. Cash basis accounting is not supported. Cash basis tax capture is supported only in France for companies or entities that use the TVA Française standard tax solution.
Enter a tax ID and operating country	Ensure a tax ID and operating company have been entered on the Company Information page. The number that you enter must be the number that's registered with the tax authority for your country. If you change the tax ID after you start entering taxable transactions, your tax submissions will be incorrect. The Deutsche Umsatzsteuer standard tax solution for Germany uses the steuernummer domestic tax ID for the UStVA return. For more information, see Company information.

Task

Description

Set the locale language for your country

The locale language determines the terminology that's displayed.

To set the locale language, go to Company > Setup > Company. Select Edit and, in the Global settings section, select Language.

For more information, see Terminology across locales.

Set the accounting method

Select Accrual only for the accounting method. The Taxes application supports accrual accounting and the accrual side of dual-method accrual and cash basis accounting. Cash basis accounting is not supported.

Cash basis tax capture is supported only in France for companies or entities that use the TVA Française standard tax solution.

Enter a tax ID and operating country

Ensure a tax ID and operating company have been entered on the Company Information page. The number that you enter must be the number that's registered with the tax authority for your country. If you change the tax ID after you start entering taxable transactions, your tax submissions will be incorrect.

The Deutsche Umsatzsteuer standard tax solution for Germany uses the steuernummer domestic tax ID for the UStVA return.

For more information, see Company information.