These tax rates are pertinent to our clients who live in jurisdictions that have federal consumption taxes commonly referred to as VAT, GST, PST, or HST — there are probably others that we are unfamiliar with. Regardless of the name, most seem to function in the same general manner. Tax is paid when making purchases and tax is collected when making sales. Therefore we have both a purchase and sales rate that you can set up.
Below the Master Tax Rates pod is Taxable Items. This refers to what you will charge tax on when invoicing for each profit center.
Default Tax Rates are the Sales and Purchase rates that will be applied to contracts and are unique to each profit center.