Tax Item Types in the SuiteTax Engine
The SuiteTax Engine uses tax item types for tax calculation and VAT reporting purposes. You can set two tax item types:
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Services – This tax item type classifies and reports the transaction under services.
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Goods – This tax item type classifies this and reports the transaction under goods.
Setting a tax item type in your item records is optional. The SuiteTax Engine automatically sets the tax item type when creating a new item and uses the following default tax item type values:
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All service items have a default tax item type of Services.
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All other standard item types have a default tax item type of Goods.
For existing items, the tax item type must be set manually.
To set the tax item type:
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Go to Lists > Accounting > Items.
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Click Edit next to the item you want to update.
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Click the Tax subtab.
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In the Tax Item Type field, select a tax item type from the list.
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Click Save.