The following table is an example of a typical tax code table for the UK (Country Code = GB).

Using this configuration, the system behaves as follows for each record.

1. If it is a domestic transaction, and tax at the rate of 17.5% is charged on the invoice, then tax code V1 is always used.

2. If the goods are shipped from an EU member state country to the UK, then tax code V3 is always used.

3. If the invoice is from an EU member state vendor and the service is performed in the UK, then tax code V4 is always used.

4. If it is a domestic transaction, and tax at the rate of 8% was charged on the invoice, then tax code V6 is always used.

5. If it is a domestic transaction, and tax at the rate of 15% was charged on the invoice, then tax code V9 is always used.

6. If the invoice is from a vendor outside of the EU, and the goods are shipped to the UK, then tax code VF is always used.

7. If no specific item tax percentage is determined from the invoice, but it is a domestic transaction, then tax code V9 is always used.

Step 8 represents the default tax code for a combination of ship-to and ship-from countries. The most common non-zero tax code must be set against this record.

If an additional business requirement involves a new tax code (VS) that must be used in instances where a non-EU member state vendor submitted an invoice for a service provided outside the EU, and where tax was charged at 0%, then add the following entry to the tax table.

Equally, if a requirement arises whereby a different tax code (DS) must be used in all instances involving a service carried out domestically irrespective of whether tax is charged or not, the following entry must be added to the tax table.