Sabrina of Union Alpha asked us a good question-

How can we apply the 7% local tax and 3% sales tax on local level as well as the 5% on income amount.

The MBA system has a built-in Tax Juridiction setting to handle the transaction taxes apply to invoices.

However, we can only apply one tax to one invoice. How can the system apply 3 different taxes to one invoice?

Usually, client or customer doesn’t care the distribution of the taxes. What he cares is just the total amount.

This is like the sales tax in California. If San Francisco imposes 8.5%, with it, 5% goes to the state, 1% goes to the county, 1% goes to the city, 1.5% goes to the BART (train).

User only needs to set up San Francisco as a Tax Jurisdiction with its Tax Payble account for tax liability. On invoices, customers in general do not want to see all the distribution of that 8.5%. They only want one rate and amount.

So, the present system can still handle the Beijing situation. However, we would like to listen to other users in other countries for guidance and suggestion to make the transaction tax system more user friendly.