A Simple Guide to Classifying Items and Services in eTIMS

Accurate classification of products and services is a vital part of complying with eTIMS requirements. Whether you're selling goods, offering services, or both, proper classification ensures smooth operations, accurate tax computation, and overall compliance.

Why Classification Matters in eTIMS

Correctly classifying your items and services in eTIMS impacts several key areas of your business:

• Accurate Tax Calculation: The VAT rate applied depends on how an item or service is categorized.

• Regulatory Compliance: Misclassification can lead to discrepancies that affect your compliance status.

• Efficient Reporting: Proper data classification streamlines reporting and return submissions.

• Customer Transparency: Receipts issued reflect correct item/service names, pricing, and details.

  On the flip side, poor classification can result in underpaid taxes, rejected returns, customer disputes, and unnecessary investigations.

Best Practices for Classification

✅ Do This

• Choose the closest matching category

• Use standard business terms

• Ask for help if unsure

• Update items when details change

❌ Avoid This

• Picking random or generic classes

• Using vague or overly specific names

• Guessing or skipping the classification step

• Reusing outdated or incorrect classifications

Consequences of Misclassification

Incorrect classification can cause:

• Inaccurate VAT charges

• Disruptions in reporting

• Disputes with customers over unclear invoices

• Increased exposure to audits and fines

Avoid these issues by training your team, auditing your item list regularly, and ensuring accurate data entry during invoice generation.

How DigiTax Simplifies Item and Service Classification

Navigating item and service classification doesn’t have to be complicated. DigiTax offers a user-friendly platform that makes adding sales items seamless and intuitive whether through its dashboard solution, android app or API system to system integration.

Whether you're just getting started or managing a growing catalog, DigiTax supports you with features designed for clarity and accuracy.

Here’s how DigiTax helps you stay compliant and efficient:

• Easy Item Setup: Add sales and service items in just a few clicks—no technical expertise needed.

• Credit Notes Made Simple: Made a mistake? Easily create and issue credit notes to correct any errors.

• Real-Time Support: Unsure about how to classify something? Our responsive support team is ready to help whenever you need guidance.

• Ongoing Updates: As tax regulations evolve, DigiTax ensures your system remains compliant and up-to-date.
  With DigiTax, item and service classification in eTIMS is a straightforward, supported process.

Need a Visual Walkthrough? We’ve Got You Covered

DigiTax offers a dedicated YouTube playlist of How-To Guides to help you confidently navigate item and service classification, step-by-step. Whether you're adding new items, editing categories, or issuing credit notes, our tutorials walk you through the entire process with ease.

👉 Visit the DigiTax YouTube Channel – How-To Guides Playlist
Learn by watching, pause when needed, and follow along at your own pace.

Conclusion

Proper classification in eTIMS is more than a formality. It's essential for tax compliance and operational efficiency. With the right approach, your business can avoid penalties, improve reporting accuracy, and maintain good standing with the relevant authorities involved in your day to day business operations.