Fiscal positions in Odoo allow taxes and accounts to be mapped or replaced for specific vendors or customers. This helps configure special taxes by country or state. A fiscal position can be created to replace the default 10% VAT tax with a 12.5% VAT tax for a customer in another state. Tax and account mappings are configured for the fiscal position. It will then automatically apply the correct 12.5% VAT tax on invoices and quotations for that customer.