TAXATION MANAGEMENT USING ASYCUDA++ Ó UNCTAD - SITE (V1.15) A.17 Example: A  Value  Added  Tax  of  5%  may  apply  to  most  commodities  in  the  tariff.  The  5% rate  could  be  entered  against  each  Commodity  Code  under  the  VAT  column.  If the rate is increased to 6%, each Commodity Code line with "VAT"  "5%" must be updated. If instead a code is used to represent the numeric value of the VAT rate, and this code is inserted into each Commodity Code line under the "VAT” column, then changing the numeric value of the code from "5" to "6" updates all of the Commodity Code lines containing the code. Similarly, when a Commodity is exempt from a particular tax, the code is given the value of 0.00. The example below shows code "ST" for Stamp Tax with a rate of 3%. Figure A.10: MODCHQ: Functions: Datbase Management: Customs Tariff: Tariff Components: General Note Taxation Processing General segment level To calculate taxes on a declaration the taxation process retrieves and performs the applicable rules from  the  national  configuration.  These  include  'General  Application  Rules'  such  as  taxes  to  be applied  at  a  high  level,  independent  of  any  declaration  procedure  or  commodity,  and  'Valuation Rules', where the tax base is calculated from declaration data. Declaration item level The taxation process retrieves the list of applicable rules from ·     The national configuration for every tax column in the tariff; ·     The table of  General notes; ·     The table of Taxation Rules; and ·     Sorts the retrieved rules according to priority, and performs them in that order. Rates of Taxation Rates  of  taxation  are  input  directly  into  the  taxation  columns  for  each  Commodity  Code.  The Commodity Codes are accessed through MODCHQ, menu options MODCHQ, ‘Functions’, ‘Database Management’,  ‘Customs Tariff’, ‘ Commodity Code’.