You can use the tax calculator to find out how business decisions would affect tax results; for example, how the tax rate would change if you opened a new business location in a different taxing jurisdiction.

1. Run a control transaction.
   1. Click the Tax Calculator tab.
   2. Leave the default settings in the Document-level settings section.
      The Document Date field will automatically populate with today's date. The tax calculation type is set to 1 - Forward Calculation. By default, Global Tax Determination will not save the transaction to the database.
   3. In the Locations section, select Ship To and Ship From for Location 1, as the address of the store will serve as both.
   4. Enter the address of the store, then click Get geo code for this address.
      If you do not know the exact location at this point, skip the street address, and enter the city, state, and ZIP code only. In this example, it is Boston, Massachusetts 02108.
   5. Select a Geo Code from the list.
      If you do not select a Geo Code, Global Tax Determination will choose the most suitable Geo Code based on the address you entered.
   6. In the Default line settings section, leave the payment type set to Debit and the transaction type set to 1 - Sale.
   7. Optional: If you need to add a temporary tax obligation, click Show additional fields and select Tax obligation / registration from the dropdown, then select the type of obligation and enter the jurisdictions, statuses, and registration numbers.
   8. In the Line Items section, enter the net sales price of your product in the Gross Amount field.
      In this example, it is $50.
   9. Click Calculate Tax.
      The results of the calculation will appear.

      • The first section contains the total tax calculated for this transaction; in this case, it is $3.13. Make a note of this tax amount as this is the baseline.

      • The Jurisdiction Summary section shows how the total tax breaks down into the various state, county, city, and district-level taxes and what tax rates and tax amounts are charged on these levels. In the same section, the Tax Type column shows the tax type the calculator identified. Massachusetts does not have local sales tax, so for this transaction, there is one line for state sales tax (type 1).

      • The Line Item 1 section shows the gross amount, tax rate, and tax amount for the first line item. In this case, the tax amount for the line item is the same as the amount for the entire transaction, since there was only one line item in the transaction. If you added more line items, the details of each line item would be listed separately under Line Item 1, Line Item 2, Line Item 3, and so on, and the transaction summary would show the total tax amount for all line items.

   10. Optional: Click View full details to see a list of the tax rules that were taken into account when calculating tax.
2. Apply the Good/Service Code.
   1. Click the Close results icon to return to the Tax Calculator page.
   2. In the Line Items section, add the Good/Service Code that matches your product category to Line Item 1. In this example, it is 2038356, the Good/Service Code for General Clothing.
   3. Click Calculate Tax.
      This time, the total tax amount is $0.00. The Good/Service Code tells Global Tax Determination that this item is clothing. Sales of clothing under $175 are usually exempt from sales tax in Massachusetts, so there is no tax on this transaction.