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Customers and tax authorities may have many different tax requirements. A customer may be tax exempt for all services provided. One tax authority may require taxing all labor and materials, while another authority requires that only labor is taxed.

Oracle Projects lets you specify, on a line-by-line basis, which invoice lines you want to tax. Oracle Receivables determines the appropriate tax rate based upon your tax implementation. Oracle Receivables allows you to calculate tax based on customer shipping addresses and tax codes.