If tax authority collects sales tax, GST, VAT or similar. You should add default tax codes under
This means when new business in your country is created, the business will automatically get set of tax codes and don’t have to create them themselves.
Non-zero percentage tax codes require you to select
Account. Do not leave this field empty.
Chart of Accounts and create new liability account such as
VAT payable, then select this account in your tax code under
You need to also create sample transaction for each tax code which would demonstrate how tax code is used. These sample transactions would not be copied over when creating new business.