What are tax types?

Tax types provide a system for classifying goods and services into taxable categories. For example, tax types are used to indicate whether a sold item is taxable or not. To mark a sold item as taxable, first create a tax type called taxable—then make the link between that tax type and any of your item records which need to have tax charged against them. Once your taxable items have been identified, you can create tax assignments to specify appropriate tax rates for specific tax zones. You can create as many different tax types as needed to handle both simple and complex tax scenarios.