Item tax groups—Taxes application

When you use Advanced Tax or a tax solution in the Taxes application, item tax groups let you apply different rates to items according to their taxable category. You associate items with item tax groups. Then, you can use tax schedule maps to apply different tax schedules to your item tax groups.

This topic is applicable only if your company is subscribed to the Taxes application. For information relevant to tax objects used in Advanced Tax, see Advanced Tax overview.

Your company distributes a product that's considered a luxury item, and luxury items have a separate tax of 3%. You can create an item tax group for "Luxury Tax" and assign the appropriate items to that item tax group. You can then apply a tax schedule that adds an additional 3% tax to all the items in the Luxury Tax group.

Your company distributes products that have different VAT rates. Perhaps you sell goods that are taxed at the standard and reduced rates. You can create item tax groups for the rates you need and assign your items to the appropriate item tax groups.

The Taxes application gives you access to standard tax solutions for several supported countries. These setups include pre-configured tax objects for the following categories:

These tax objects need to be manually created for Advanced Tax and for Taxes application custom tax solutions.

The standard tax solution for Canadian Sales Tax has a streamlined setup that only includes tax objects for Tax details and Tax schedules. You can create custom tax schedule maps for your Canadian entities to take full advantage of the Taxes application functionality.

See the Taxes application overview for more information on standard and custom tax solutions.

You can view your list of item tax groups in Order Entry, Purchasing, Inventory Control, or Taxes.

Add an item tax group

Subscription

  • Inventory Control

  • Order Entry

  • Purchasing

  • Taxes

Regional availability

All regions

User typeBusiness
Permissions

Inventory Control, Order Entry, Purchasing, or Taxes:

  • Item tax groups: Add, Edit, Delete, List, View
  1. From Inventory Control, Order Entry, Purchasing, or Taxes, go to Setup > Items > Tax groups and select Create.
  2. In Name, enter the name for the item tax group.
    Names must be unique and are limited to 80 characters. Space, underscore, and dash are the only special characters allowed.
  3. If you enabled multiple tax jurisdictions on the Configure taxes page, select a Tax solution for the item tax group.
  4. Select Save.
  1. From Inventory Control, Order Entry, Purchasing, or Taxes, go to Setup > Items > Tax groups and select Add.
  2. In Name, enter the name for the item tax group.
    Names must be unique and are limited to 80 characters. Space, underscore, and dash are the only special characters allowed.
  3. If you enabled multiple tax jurisdictions on the Configure taxes page, select a Tax solution for the item tax group.
  4. Select Save.

Duplicate an item tax group

You cannot edit the name of an item tax group. However, you can duplicate an item tax group and then enter a different name.

Subscription

  • Inventory Control

  • Order Entry

  • Purchasing

  • Taxes

Regional availability

All regions

User typeBusiness
Permissions

Inventory Control, Order Entry, Purchasing, or Taxes:

  • Item tax groups: Add, Edit, Delete, List, View
  1. From Inventory Control, Order Entry, Purchasing, or Taxes, go to Setup > Items > Tax groups.
  2. Find the item tax group that you want to duplicate.
  3. Select More actions > View at the end of the row.
  4. Select Duplicate.
  5. Enter a new Name for the item tax group.
    Names must be unique and are limited to 80 characters. Space, underscore, and dash are the only special characters allowed.
  6. Select Save.
  1. From Inventory Control, Order Entry, Purchasing, or Taxes, go to Setup > Items > Tax groups
  2. Find the item tax group that you want to duplicate.
  3. Select View.
  4. Select Duplicate.
  5. Enter a new Name for the item tax group.
    Names must be unique and are limited to 80 characters. Space, underscore, and dash are the only special characters allowed.
  6. Select Save.

Delete an item tax group

You can delete an item tax group that you no longer use. After a record is deleted, it cannot be recovered.

Subscription

  • Inventory Control

  • Order Entry

  • Purchasing

  • Taxes

Regional availability

All regions

User typeBusiness
Permissions

Inventory Control, Order Entry, Purchasing, or Taxes:

  • Item tax groups: Add, Edit, Delete, List, View
  1. From Inventory Control, Order Entry, Purchasing, or Taxes, go to Setup > Items > Tax groups.
  2. Find the item tax group that you want to delete.
  3. Select the checkbox for that item tax group.
  4. Select Delete.
  5. Select OK in the delete confirmation box.
  1. From Inventory Control, Order Entry, Purchasing, or Taxes, go to Setup > Items > Tax groups.
  2. Find the item tax group that you want to delete.
  3. In the Delete column, select the checkbox for that item tax group.
  4. Select Delete.
  5. Select OK in the delete confirmation box.

Standard item tax groups

Depending on the tax solution you configured in the Taxes subscription, item tax groups that are tailored to the tax jurisdiction are automatically created. You cannot edit or delete Standard item tax groups. You can add additional item tax groups to meet additional business needs, if necessary.

Item tax groups are listed by whether the group is typically used for items that are purchased (input) or items that are sold (output).

Download the update change log to review the standard item tax groups for each tax solution.

Assign item tax groups

After you've created an item tax group, you can assign items to the group in the item record. If your company is configured for a single tax jurisdiction, the field is on the General tab of the Item Information page. If your company is configured for multiple tax jurisdictions, the applicable fields are on the Item tax group tab of the Item Information page.

If you're using multiple tax solutions, you can assign an item to more than one item tax group so the item is taxed at the applicable rates for each tax solution. Learn more about the Item tax group tab.

Field descriptions

The following table describes each item in the Item tax group information page.

Item tax group information page field descriptions
FieldDescription

Name

Name of the item tax group. You cannot change the name after you have saved the tax schedule.

Tax solution

The tax solution to which the item tax group belongs. You can change the tax solution only if the Configure Taxes page is enabled for multiple tax jurisdictions.