How to Turn off Tax Calculation for an AR Transaction Type

Please do the following to stop the tax calculation for specific transaction type

1.Go to Tax Manager > Advanced Setup Options > Tax Determining Factor Sets Click on Create > Enter name

Determining Factor Class > select Transaction Generic Classification
Determining Factor Name > Select Transaction type
Click Apply.

2. Go to Tax Condition Sets and click on create
Give a name and select the factor set you have just defined
Click next
Select the relevant transaction type in the Value From field and apply.

This completes the factor and condition sets setup.

3.Go to Tax configuration > Tax Rules Page

Give Operating Unit as the Configuration Owner and query the regime.

4.For the Rule Type "Determine Applicability", click on the "Guided Rule Entry" Button
Give a rule name, start date and click next.
Select the condition set and factor set you have defined and select Result as 'Not Applicable'
Then give rule Order and enable the rule and click finish.

This rule will imply the following

> If Transaction Type = '.......', then the tax is not applicable;

So if you use this transaction type, the tax should not get calculated.