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EC tax code based on item type

in Ask A Guru 2 comments

Hi!

We have an account with subsidiaries all over Europe selling products and software combined on one order (B2B). All subsidiaries share the items, but only one subsidiary, Company A holds the inventory for the products and one subsidiary, Company B holds the software licenses. We are therefore using the Intercompany Inventory drop ship feature.

Products are configured as inventory drop ship items with Company A as preferred vendor. But we would now like to add the software items as a drop ship item with Company B as the preferred vendor. Problem is that we have configured the software as service item, which can't be used as drop-ship items in NetSuite. I understand that we can change the item type from service to non-inventory item. My problem? The tax code when selling to another EC-country is set to sale of goods instead of service since the non-inventory item is considered as goods.

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