Each separate tax in a tax regime includes records for the statuses, rates, and rules that are used to calculate and report on the tax.
E-Business Tax defaults tax information from the tax regime to each tax that you create under a regime. You can modify this information at the tax level according to your needs, as well as add additional defaults and overrides.
You can create a new tax, or create a tax that is based on an existing tax within the regime. When you create a new tax based on an existing tax, the attributes that remain constant for all taxes derived from the source tax are not available for update. You can only enable a tax for use on transactions after you have completed all of the related setup required.

 
To set up a new tax, Navigate to the Create Tax page and select the tax regime code where you want to create the tax. E-Business Tax defaults the tax settings from the tax regime.

1.1 Enter the configuration owner for this tax. The configuration owner determines the ownership and use of this tax and its associated setup.
Note: You cannot update the configuration owner setting after you create the tax record. All tax statuses, tax rates, and tax recovery rates defined for this tax inherit the same configuration owner. Unless this tax belongs to a party-specific configuration, use Global Configuration Owner to share this tax with the other parties in your company.

1.2 Select the tax source:
Create a new tax - Use this option: (1) to create a tax that becomes the source for other taxes within this regime to share tax jurisdictions and tax registrations; or (2) to create a tax where the registration and jurisdiction information is independently maintained and not shared.
Create from an existing tax - Use this option to create a tax that shares the registration and jurisdiction information from an existing tax within this regime.
In most cases, you should set up the taxes in a tax regime such that they can share the same jurisdiction and registration information.

2.1 In the Tax field, enter a code for this tax. Use a coding convention in keeping with the tax regime code.
If the tax source is Create from an existing tax, then select an existing tax from the list of values.

2.2 Enter a tax name. You can create a unique tax name or use the code that you entered in the Tax field.

2.3 Enter a tax type to classify this tax for reporting purposes. E-Business Tax provides these tax types:
• Sales - Direct taxes that are collected from the consumer by the supplier and paid to the tax authority.
• VAT - Value added or cascading taxes.
• Excise - Taxes on the production and manufacture of goods.
• Customs Duty - Taxes charged on imported and exported products.
• Environmental - Taxes charged as a result of environmental regulations.
You can add tax types according to your reporting needs

3. Enter geographic information for this tax. This includes the geography type for the tax, such as City, County, or State, and the parent geography type and parent geography name of the geography type.
For example, if the tax is US County Tax, then the geography type is County, the parent geography type is Country, and the parent geography name is United States.
• Enter the geography type for this tax. You can enter a TCA master reference geography type or a tax zone.
• If you use a TCA master reference geography type, enter the parent geography type and parent geography name.
If the geography type is Country, enter Country for parent geography type and the tax regime country name for parent geography name.
• Enter an override geography type that belongs to the parent geography type, if you plan to set up different rates for this geography within the same tax jurisdiction.

4. 1 Enter the currency for this tax, and define the way that tax amounts are displayed on transactions and reported to the tax authorities.
If you set the Allow Tax Rounding Override option at the regime level, you can update the rounding parameters for this tax. If you want to let an individual party update the rounding rule for this tax on its transactions, then set the Allow Tax Rounding Override option at the tax level and update the rounding rule in the applicable party tax profile.