How to Set Default Tax Code by Customer and Item

Overview:

This feature allows users to set a default tax code for each item based on the selected customer. When creating an invoice, the system will automatically display the default tax code according to the combination of the customer and item selected.

 This feature helps reduce manual tax selection, ensures accurate tax application, and improves efficiency when issuing invoices — especially for customers with specific tax treatments or exemptions.

 Scenario:

The user wants to set the default tax code SVTE for a specific customer because the value of taxable services provided to this customer is eligible for B2B exemption under the Service Tax (Persons Exempted from Payment of Tax) Order 2018.

When creating an invoice for this customer, the system will automatically apply the SVTE tax code once the customer and item are selected, ensuring the correct tax treatment without manual adjustment.

Solution:

1. Customer Maintenance > Select the particular Customer
   Tax Exemption > Click New. Select the Stock / Services > Update the customer ‘Tax Exemption Number’ > select Tax Code > Save  
   
   
2. Notice that the Exempted item is recorded, then click Save
   

  3. Once the customer and item are selected in a transaction, the system will automatically display the default tax code.