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:

• Services – This tax item type classifies and reports the transaction under services.

• 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:

• All service items have a default tax item type of Services.

• 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:

1. Go to Lists > Accounting > Items.

2. Click Edit next to the item you want to update.

3. Click the Tax subtab.

4. In the Tax Item Type field, select a tax item type from the list.

5. Click Save.

General Notices