In Infor M3, the VAT code is the central component used to manage value-added tax. It is defined in the program 'VAT Code. Open' (CRS030) and directly contains the essential parameters for a business transaction, including the specific VAT rate and the VAT method (e.g., normal VAT, reverse charge). This code is then linked to customers, suppliers, items, or countries, and retrieved during transaction entry to ensure the correct tax is calculated and applied according to the defined rules.

B. VAT exceptions: These are rules designed to override the default VAT code in specific, non-standard scenarios (e.g., for a particular item sold to a specific customer), not to determine the primary method and rate.

C. VAT report from date: This is a selection parameter used to filter transactions by date when generating a VAT report. It has no role in determining the tax calculation for an individual transaction.

D. VAT values for FAM functions: Financial Application Management (FAM) functions define the accounting logic (i.e., which general ledger accounts to post to) for transactions, including VAT. The VAT code is an input to this process; the FAM function does not determine the rate or method.

1. Infor M3 Financial Management User Guide: In the section covering Tax Management, the setup for 'VAT Code. Open' (CRS030) is detailed. It specifies that the VAT code record contains fields for 'VAT rate' and 'VAT method', establishing it as the primary determinant for tax calculation. (Refer to documentation on CRS030 functionality).

2. Infor M3 Financials Implementation Guide: The chapter on Tax Configuration explains the hierarchy and logic for tax determination. It clarifies that the system's primary goal is to find the appropriate VAT code for a transaction line, which then dictates the rate and calculation rules. The guide distinguishes this primary function from VAT exceptions (CRS031), which serve as overrides.