These components can be used to define the specifics that make up your tax rates. These can be components like the state or city elements that create an overall tax rate. These components can then be drawn upon and defined with an actual tax rate to be used in your tax descriptions.
In order to set up some tax components, simply go to your system settings and open the 'Tax components' page from the 'General settings' section. In order to set up a new one, simply enter the title using the form on the left-hand side. You can edit or delete the record once it's been saved if need be using the icons on the right-hand side.
These components can be used when you're setting up your tax descriptions. When using the 'Add tax rate' function on the tax description setup, you will be able to use the tax components you have set up, assign values (percentages) to them and save them to be incorporated by your tax descriptions themselves: