Tax Code
Use up to three characters to enter a code for the tax record you're creating.

Description
Enter a description for the tax code you've entered. We recommend that your description be short and easy to remember.

Tax Type
Select the tax type that applies to the tax code you're creating. In MYOB AccountEdge, there are three tax types:

• Import Duty - This tax type should be used by importers bringing goods into the United States from other countries. Tax codes with this tax type are used to record the import duty payable on a purchase order without changing the total amount of the purchase order. (The import duty is treated as a separate transaction since the duty is payable to the federal government, not to the company supplying the goods.)


• Sales Tax - This tax type covers most of the taxes you'll collect or pay. This tax type should be used for state, county and city taxes on retail sales.


• Consolidated - This tax type is used for tax codes that are made up of two or more other tax codes. For example, if you're required to charge both a state sales tax and a local (city or county) sales tax on the sales you make, you can use a consolidated tax code that combines tax codes for both these tax rates.

Rate
Enter the percentage of tax that is associated with the tax code you're creating.

Linked Account for Tax Collected
Enter or select the account you want to use to track the tax calculated for this tax code on invoices recorded in the Sales window. This account typically is a liability account. Click the zoom arrow next to the field name to open the Edit Accounts window and make changes to the account.

Linked Card for Tax Authority
If you've set up a vendor card for the tax authority for whom this tax is collected, enter or select that card here.

New button
Click this button to open a new Tax Code Information window and create a new tax code.

OK button
Click this button to accept the entries you've made in this window.