3.1 Item and FIRS Tax Category

Nigeria Compliance via DigiTax DigiTax supports synchronization of Items with FIRS. Proper setup of master data helps ensure successful transaction validation and compliance reporting.

Each item to be tracked by FIRS must have a suitable FIRS Product Category. Itis part of a three-tier structure that connects Items to DigiTax for compliance tracking:

1. FIRS HS Code - The base reference data (created by administrators)
2. FIRS Product Category - A classification that links to an HS Code
3. Item - Your product/service items that use these categories

How to Create and Link a FIRS Product Category to an Item

Step 1: Ensure FIRS HS Code Exists

Before creating a FIRS Product Category, you need an HS Code:

1. Navigate to FIRS HS Code list
2. Check if the required HS Code exists
3. If not, create a new one:

• HS Code: The harmonized commodity code (e.g., 1001.90.10)
• Description: A description of what this code represents
• Category: Select either Item or Service

The category you select will automatically determine whether the linked Product Category is marked as a service.

Step 2: Create the FIRS Product Category

1. Navigate to the FIRS Product Category list.
2. Click + Add New FIRS Product Category to create a new entry.
3. FIll in the following fields:

• Category Name: A unique name for this product category (e.g., Processed Cereals, Consulting Services)
• HS Code: Select the HS Code created in Step 1
• Is Service: This field is automatically populated based on the selected HS Code's category (read-only)

5. Click Save

Step 3: Enable FIRS Tracking on Item and Link the Category

Now you can link the FIRS Product Category to your Item document:

1. Open an Item document (or create a new one)
2. Scroll to the FIRS Tracking section (or expand the custom fields area)
3. Check the Allow FIRS Tracking checkbox

• This enables two mandatory fields: FIRS Tax Category and FIRS Product Category

4. Fill in the mandatory fields:

• FIRS Tax Category: Select the appropriate tax category for this item
• FIRS Product Category: Select the product category you created in Step 2

5. Click Save

What Happens Automatically

When you save an Item with FIRS Tracking enabled:

• The system validates that both FIRS Tax Category and FIRS Product Category are filled
• The item is synced with the DigiTax API
• Upon successful sync, a DigiTax ID is assigned to the item (visible in the read-only DigiTax Id field)
• The item can now be tracked for Nigeria tax compliance