How to handle items with different tax rates - depending on components
Client has an interesting business requirements.
Is buying (medical) baskets with various components. purchased from supplier as 1 item. However, the components could be eligible for high VAT or low VAT.
Example
Item 123 Price EUR 100
On 60 EUR we should charge 21% VAT
On 40 EUR we should charge 6% VAT
Can I use Compounding / Group tax for this? I am very much in doubt as it seems a lot of configurations and components of the tray's differ per year ... and as such the VAT ratio as well.
I am also not sure how this would affect my tax reports.
Alternative is to split the item into 2 items (like a Bill of Material or Kit) while having the possibility to charge VAT on the components. In this case the 2 items need to be used together - linked - , and used on PO and AP Invoice as 2 items.