---
title: "3.1 Item and NRS Tax Category"
space: "Nigeria Compliance Via Digitax"
url: "https://docs.navari.co.ke/nigeria-compliance/3-core-workflows/31-item"
updated: "2026-06-04"
---

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

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

1. **NRS HS Code** - The base reference data (created by administrators)
2. **NRS 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 **NRS** Product Category to an Item

### Step 1: Ensure **NRS** HS Code Exists

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

1. Navigate to **NRS 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 **NRS** Product Category

1. Navigate to the **NRS** Product Category list.
2. Click **+ Add New NRS 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)
4. Click **Save**

### Step 3:  Enable **NRS** Tracking on Item and Link the Category

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

1. Open an **Item** document (or create a new one)
2. Scroll to the **NRS Tracking** section (or expand the custom fields area)
3. Check the **Allow NRS Tracking** checkbox
  - This enables two mandatory fields: `NRS Tax Category` and **NRS** `Product Category`
4. Fill in the mandatory fields:
  - **NRS Tax Category**: Select the appropriate tax category for this item
  - **NRS Product Category**: Select the product category you created in Step 2
5. Click **Save**

### What Happens Automatically

When you save an Item with **NRS** Tracking enabled:

- The system validates that both FIRS Tax Category and **NRS** 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