What is 'tax license' in SAP SD - Sales and Distribution?

tax license - Overview

• Component: SD

• Component Name: Sales and Distribution

• Description: A certificate that indicates exemption from certain tax types. The license code is used to determine the tax type that the license refers to.

tax license - Details

• 
  Key Concepts: 
  Tax license is a feature in SAP Sales and Distribution (SD) that allows customers to register their tax information with the system. This information is then used to calculate taxes on sales transactions. The tax license also helps to ensure that customers are compliant with local tax laws. 
  
  How to use it: 
  In order to use the tax license feature, customers must first register their tax information with the system. This can be done by entering the relevant information into the system, such as the customer’s name, address, and tax ID number. Once this information is entered, the system will automatically calculate taxes on sales transactions based on the customer’s registered tax information. 
  
  Tips & Tricks: 
  It is important to keep the customer’s tax information up-to-date in order for the system to accurately calculate taxes on sales transactions. It is also important to ensure that customers are compliant with local tax laws when using the tax license feature. 
  
  Related Information: 
  For more information about using the tax license feature in SAP Sales and Distribution (SD), please refer to SAP Help documentation or contact your local SAP representative.