Service Tax Categories Screen

Last Updated: Thu Apr 20 2023

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


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.

Service tax categories set on services can be overridden if desired, when configuring services on packages. For instance, if you need to apply a service specific tax rate for ‘Service X’ that is sold in Germany you can override the service tax category on the service within the specific package containing Service X that is sold in Germany. If the service tax category setup on the service is applicable for all other regions then no further overrides are needed at the package level and the service tax category configured on the service will be used. See the package frequencies screen help for details on how to configure service tax category overrides.

In environments configured to tax usage in real time, the taxes applied to usage based charges can be setup to be different than the taxes applied to the same service’s non-usage based charges (i.e. non-recurring charges, recurring charges). This is accomplished by configured a service tax category on the usage class.

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

Tax Code Selection

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 screen help.


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.




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 unique and descriptive name for the service specific tax, e.g. 'Federal USF tax', 'Cellular/Access Charge', 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.


Adding Service Tax Categories

  1. Under the Service Tax Categories heading on the left click the (emoji) icon

  2. Under the Add Category heading on the right specify the service tax category Name

  3. Click Save

Renaming Service Tax Categories

  1. Under the Service Tax Categories heading on the left click the category you wish to edit

  2. Under the Edit Category heading on the right edit the service tax category Name

  3. Click Save

Deleting Service Tax Categories

Note: Service tax categories that are in use (e.g. configured on services and tax codes) cannot be deleted. In order to delete a service tax category that is in use, first check the References tab to determine what entities are configured to use the service tax category that you wish to delete and then change those entities to use an alternate service tax category.

  1. Under the Service Tax Categories heading on the left select the service category you wish to delete

  2. Under the same Service Tax Categories heading click the (emoji) icon

  3. On the confirmation dialog that appears select Yes