1.1 KiB
1.1 KiB
You can define which Tax Template must be applied on a Sales / Purchase transaction using Tax Rule.
![Tax Rule](/Shiloh/brotherton-erpnext/media/commit/b3c8f44b3ec3e8936b5a9e48891fd3d54dc38330/erpnext/docs/user/manual/en/accounts/setup/%7B%7Bdocs_base_url%7D%7D/assets/img/accounts/tax-rule.png)
You can define Tax Rules for Sales or Purchase Taxes. While making a Transaction the system will select and apply tax template based on the tax rule defined. The system selects Tax Rule with maximum matching Filters.
Let us consider a senario to understand Tax Rule Better.
Suppose we define 2 Tax Rules as below.
![Tax Rule](/Shiloh/brotherton-erpnext/media/commit/b3c8f44b3ec3e8936b5a9e48891fd3d54dc38330/erpnext/docs/user/manual/en/accounts/setup/%7B%7Bdocs_base_url%7D%7D/assets/img/accounts/tax-rule-1.png)
![Tax Rule](/Shiloh/brotherton-erpnext/media/commit/b3c8f44b3ec3e8936b5a9e48891fd3d54dc38330/erpnext/docs/user/manual/en/accounts/setup/%7B%7Bdocs_base_url%7D%7D/assets/img/accounts/tax-rule-2.png)
Here Tax Rule 1 has Billing Country as India and Tax Rule 2 has Billing Country as United Kingdom
Now supposed we try to create a Sales Order for a customer whose default Billing Country is India, system shall select Tax Rule 1. In case the customers Billing Country was United Kingdom, the system would have selected Tax Rule 2.