Tax components hold individual tax rates which are used to make up the total rate on a tax code.
In the US, sales tax reporting is broken down by tax component to provide figures for each level of government. For example, you may have components for state, county and city.
For VAT reporting, tax codes typically require only a single component.
How to add tax components:
- Go to Settings > Tax > Tax components
- Click the Add a new tax component button
- Enter a name for the component
- Enter the rate applicable for this component
- Click the Save button
Note: once a tax component is in use, it cannot be edited.