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Service Tax Categories are configured in Setup / Finance / Taxes / Service Tax Categories |
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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 helpthe tax codes screen help.
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.
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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 |
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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).
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