How to derive tax on an AR Invoice based on item in PIM

Summary:

We want to create rules to derive tax on an AR Invoice based on the item (set up in PIM)

Content (please ensure you mask any confidential information):

I found a document where it suggested the below (simplified)

1. create a functional area catalog, with categories for the tax rates desired to be output e.g. IE VAT CATALOG with catalog category codes IE_STD, IE_REDUCED
2. attach the item in Product information Management to a category in that catalog e.g. Manage Items> Item = "chairs", "Relationships" tab add row for Category "IE_REDUCED" in catalog IE VAT CATALOG
3. create Product FIscal Classification type for the Inventory Category Set = 'IE VAT CATALOG', Product Fiscal Classification Type group/Name =" IE_VAT_FCG" with "IE_VAT" Tax Regime