US VAT Calculation Query

Sksharma

Hi,

In US localization GST is applicable on goods and service sale and purchase, it is calculated through VAT Posting Set up.

Then what is the use of Tax Area, Tax Group and Tax details in VAT calculation in US database?

Thanks

davmac1

US uses sales tax not VAT.
US uses tax area codes for tax rates and tax reporting - each area sets its own rates.
Each tax area can have different tax rules for different classes of items and services.
This is why products like Avalara have become popular - that calculate the correct taxes in their back end engine and handle tax reporting