Use the Tax Locations and Rates window to enter and update your locations and their associated tax rates. For each location you can define multiple tax rates and postal code ranges, as long as the date and postal code range do not overlap. Receivables uses these locations and tax rates to create authorities and sales tax rates for tax calculations.

Receivables also uses locations to validate your customers’ addresses.

Use this window to assign tax accounts to the components of your segment that has a tax account qualifier assigned to it. You assign a tax account qualifier to any one segment of your location flexfield structure using the Key Flexfield Segments window.
You can also implement country–specific validation of foreign customer address information using the Flexible Address Formats feature.

If you do not want to manually enter or maintain location and tax rates, you can use the Sales Tax Rate Interface program to load this information from an outside tax service