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Sales Tax Authorities Explantion

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Hi All ,

Sales Tax Authorities Explantion from the Help :

You can create as many sales tax authorities as you need, each with specific address and contact information and report layout. The company can pay sales taxes to the authority directly or through a vendor account that you create for the sales tax authority.

I did not understand the concepts of the follwing

a) if vendor code is not selected what is impact ?

b) If the vendor code is selected what is the impact ?

Could any one explain with an example ?

Thanks in advance.


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