E-Business Tax (EBTax) Configuration Each country can have one or more systems of taxation. Each system deals with the taxation of specific aspects of a business transaction. For example, a sales tax system deals with the rules and regulations concerning how a sale should be taxed. Similarly, a Value Added Tax (VAT) taxation system deals with how the value addition in a manufacturing and/or sales lifecycle needs to be taxed. · · · · · A Tax Regime can be defined as a single system of taxation. A Tax Regime is implemented by one or more distinct charges. Each such specific charge is called Tax. A Tax Regime may include one tax or several different taxes. The imposition of a tax is limited by a geographical boundary. The incidence of any tax on a specific geographical area is called a tax jurisdiction. Jurisdictions are maintained in the Trading Community Architecture and are directly linked to addresses in your legal entities that are party to your taxable transactions. For the E-Business Tax engine to function properly one of the data elements is the location (address) of your trading partners. The framework to identify this location is built into the TCA geography hierarchy. An example of this would be State, County, City, Zip hierarchy in the U.S. This is shown in the following screenshot: