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Service Tax Categories

Last Updated: Aug 19, 2020

Service Tax Categories are configured in Setup / Finance / Taxes / Service Tax Categories

Overview

Service tax categories are used to apply service specific taxes to service charges. In order apply service specific taxes, service tax categories need to be configured on both tax codes and services. When the system looks for a tax code to tax a service transaction with it will match the service tax category configured on the service to the service tax category configured on tax codes. If multiple tax codes exist with a matching service tax category the system will compare the other settings in the tax code to the account settings to select the best tax code to use. The system will not select a tax code which has a different service tax category set than the service's service tax category (i.e. mismatched tax codes are ignored). For more information on tax code selection behavior see the tax codes help.

Service tax categories can be imported when AvaTax is utilized as a tax vendor. See the tax vendor help for AvaTax configuration instructions.

Prerequisites

Service tax categories can be setup immediately, there are no prerequisite configuration steps.

Service Tax Categories Panel

The Service Tax Categories panel on the left of this screen allows you to select existing categories to view and edit on the Edit Category panel to the right. Actions are also available in this panel which are shown as icons above the Filter text box. The available actions are described below.

Actions

Icon

Description

Deletes the category if not in use

Adds a new service tax category

Edit Category Panel

The information in this panel reflects the currently selected category. From here you can change the service tax category details (fields will display a red left border if a value is required and purple text if the field is read-only and cannot be modified).

Category Fields:

  • Name: a descriptive name for the service specific tax, e.g. 'Federal USF tax', 'State Telecommunications Excise Surcharge', etc.

References tab

This section displays where the selected service tax category is in use. By default the reference data is displayed in a summary format, however the Entity drop down field can be used to view the exact entities that the service tax category is configured on.