The need for VAT product posting groups is determined by the way items are taxed. One example could be differentiated VAT, for example, 10% for food and 15% for non-food items.
To set up VAT product posting groups
In the Search box, enter VAT Product Posting Groups, and then choose the related link.
In the VAT Product Posting Groups window, enter a code in the Code field to identify the group.
In the Description field, enter a brief description of the group.
Repeat this procedure for each VAT product posting group you must set up.
TasksHow to: Set Up VAT Business Posting Groups
How to: Assign VAT Business Posting Groups to Customer Accounts and Vendor Accounts
How to: Assign VAT Posting Groups to General Ledger Accounts
How to: Assign VAT Product Posting Groups to Item Accounts and Resource Accounts
How to: Set Up Combinations of VAT Business Posting Groups and VAT Product Posting Groups
How to: Create a VAT Combination Setup