Tax Rate fields

Tax Rate

• Origin Zone: Refers to a zone in the Zone table that has been associated with the Tax Zone Group. There is no default. Origin Zone cannot be modified once a Tax Rate table entry has been created.

  Notes:

  • Origin Zone is not validated against the Tax Level for the corresponding Tax Code. In theory, the Tax Rates for a Tax Code with a Tax Level of Local should refer to Zones using City or Postal Code precision rather than Zones that refer to an entire State or Country. However, no explicit validation is used to monitor this condition. The only requirement is that the Zone must be valid and must be part of the Tax Zone Group.
  • Zones that use a distance radius are only used legitimately as the destination zone for a tariff lane. Transportation Manager will not prevent a user from assigning a "Radius Zone" in an unsupported context (for example, as a Tax Zone).
• Effective Date: This date is mandatory and there is no default. Effective Date cannot be duplicated for the same Tax Code / Origin Zone combination. This date is maintainable in edit mode.
• Tax Percentage: This defines the percentage that will be used when computing a Tax Amount using this Tax Rate. There is no default. Tax Percentage can be zero but cannot be a negative value.
• Tax on Tax: The Tax on Tax flag indicates whether the tax amount should be based on tax amounts already computed at higher levels for the same Tax Type.

  For example: If Tax on Tax is True, when computing a State level tax, the amount used as a basis for the calculation would be the Freight Amount plus the Country level tax. When Tax on Tax is False, the calculation for State level tax will be based on the Freight Amount only. Given that Transportation Manager currently only supports one Tax Type, this flag is currently redundant.