Note: Avatax is a add-on module
Tax codes are used to record taxes on transactions for tax filing and/or integration purposes.
For the most part you will define the tax code of your physical store location and reference the code (along with the tax %) on the Settings record.
Taxes are primarily used for charging tax at the POS. If a Customer is taxable and a Product is taxable then tax is levied on the transaction.
There are two special tax codes which must NEVER be deleted:
Note: Avatax is used for complex tax calculations. SuitePOS Avatax Integration is used to derive taxes based on tax codes set up at the Product level via Avalara's Avatax service.