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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. 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.
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.
Prerequisites
Service tax categories can be setup immediately, there are no prerequisite configuration steps.
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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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Adding Service Tax Categories
Under the Service Tax Categories heading on the left click the
iconUnder the Add Category heading on the right specify the service tax category Name
Click Save
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Renaming Service Tax Categories
Under the Service Tax Categories heading on the left click the category you wish to edit
Under the Edit Category heading on the right edit the service tax category Name
Click Save
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Deleting Service Tax Categories
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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. |
Under the Service Tax Categories heading on the left select the service category you wish to delete
Under the same Service Tax Categories heading click the
iconOn the confirmation dialog that appears select Yes