Tax Group
Tax groups specify the authorities that tax the goods you purchase from vendors and assign your tax class for each authority. (Tax classes determine the specific classification for a tax — such as which rate is applied or whether you are tax-exempt.)
You assign a tax group to each vendor record with other tax information such as tax numbers and whether tax is usually included in invoice amounts. This information appears by default when you enter an invoice from the vendor.
If you need to change tax rates or amounts for a document, you can assign a different tax group or you can change the tax class or tax included settings. (On the Invoice Entry form, you change these settings on the Taxes tab. On the Recurring Payables form, you change the settings on the Tax/Totals tab.)
You can also change tax settings for individual invoice distribution lines (if you are calculating tax) by highlighting the distribution line and pressing the F9 key.
To change the tax rates, use the Tax Services forms in Common Services.
In multicurrency ledgers, you can change only to another tax group that uses the same currency as the vendor.