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Use the Taxing Authorities setup screen to set up various state and local sales and services taxes to be applied to your firm’s invoices. You may need to set up different taxes depending on where your firm or client does business, whether there are state and/or local sales taxes, and whether there are applicable service taxes.
Taxes that you set up here can be combined into tax areas that combine applicable taxing authorities for a specific area. Taxing authorities are a subcomponent of tax areas, and must be set up first.
To open the Taxing Authorities setup screen, choose Setup > Taxes > Taxing Authorities.
In this dialog, you can give each taxing authority a unique description, set tax rates, distinguish between sales and service tax, and assign the entry to a GL account.
See Setting up taxing authorities for more information on using this screen.