Product Fiscal Profiles
A Product Fiscal Profile is the bridge between your products and the tax system. It’s a small junction record that says: “this product, in this country, is taxed as this Tax Profile — and here is its official classification code.”
The two jobs it does are worth separating. First, it routes a product to a tax treatment so the right rules fire. Second, it records the legal classification code a country demands on its invoices — Brazil’s NCM, India’s HSN. One record, both purposes.
Access you'll need. Creating and editing Fiscal Profiles requires the Accounting Admin v2 or Accounting Controller v2 permission set. The Accounts Payable v2, Accounts Receivable v2, and Read Only v2 sets can view them but not change them.
The fields
Products are specific to each business, so — unlike jurisdictions or tax types — REDA doesn’t seed fiscal profiles; you create them for your own catalogue. Here is every field, with an illustrative Brazil example (a manufactured good with its NCM):
| Field | Type | Required | What it’s for | 🇧🇷 Example (illustrative) |
|---|---|---|---|---|
| Product | Lookup | No | The product this profile classifies | “Industrial Pump XP-200” |
| Tax Profile | Lookup | Yes | The tax treatment it routes to | BR-STD-GOODS |
| Country / Jurisdiction | Lookup (country) | Yes | The country this classification applies in | BR |
| Classification System | Picklist | No | None · NCM · HSN · HS Code · UNSPSC | NCM |
| Classification Code | Text | When a system is selected | The actual code in that system — a validation rule requires it once a Classification System (other than None) is chosen | 8413.70.10 |
| Secondary Classification Code | Text | No | An additional code where needed | — |
| Tax Situation Code (CST / CSOSN) | Text | No | Brazil CST (tax situation) | 00 |
| Fiscal Origin | Picklist | No | Brazil CST origin (domestic / imported) | 0 - Domestic |
| Is Active | Checkbox | No | Off → ignored | Yes |
The classification codes — why they’re here
Many countries legally require a standardised product code on tax documents. The fiscal profile is where REDA stores it, per product per country:
| System | Used by | What it is |
|---|---|---|
| NCM | 🇧🇷 Brazil | Mercosur Common Nomenclature — mandatory on the NF-e |
| HSN | 🇮🇳 India | Harmonised System of Nomenclature — required on GST invoices |
| HS Code | International | The global Harmonised System for customs |
| UNSPSC | Procurement | UN product/service classification |
| None | 🇬🇧 UK and most VAT regimes | No product code required |
Brazil’s profiles also carry the CST (Tax Situation Code) and a Fiscal Origin code — whether the goods are domestic, imported, or partly foreign — both legally required on the NF-e. These are stored for compliance and document printing; the tax calculation keys off the linked Tax Profile.
Two ways to tax a product
A product reaches a tax treatment by one of two routes. This is the most practical decision you’ll make in tax setup:
| 🇧🇷 Fiscal Profile (precise) | 🇬🇧 Apply Default Tax (simple) | |
|---|---|---|
| How | Create a fiscal profile linking the product to a Tax Profile, per country | Tick Apply Default Tax on the product; use a catch-all rule |
| Best for | Multi-country, multi-rate, code-required (Brazil, India) | Single-country, single-rate (UK VAT, US sales tax) |
| Effort | One profile per product per country | One flag per product |
| Classification codes | Captured (NCM/HSN/CST) | Not needed |
UK and Brazil, side by side
The same product line, set up two ways, reflecting how each country actually works:
| 🇬🇧 United Kingdom | 🇧🇷 Brazil | |
|---|---|---|
| Approach | Apply Default Tax flag — no fiscal profile | Fiscal profile per product |
| Tax Profile link | Catch-all rule (Tax Profile blank) | BR-STD-GOODS |
| Classification | None required | NCM 8413.70.10, CST 00, Origin Domestic |
| Result | 20% VAT, zero setup per product | ICMS/IPI/PIS/COFINS, NCM printed on the NF-e |
Product records are specific to each business, so these are illustrative setups rather than shipped seed data — but they mirror how the UK (simple) and Brazil (code-required) are configured in practice.
Setup
- Tax Profile and Tax Jurisdiction are required — a fiscal profile must say what treatment and where.
- One per product per country. A product sold in Brazil and India gets two fiscal profiles — one with an NCM, one with an HSN.
- Simple org? Skip them. For single-country VAT/sales-tax, set Apply Default Tax on each product and use a catch-all rule — no fiscal profiles to maintain.
- Classification codes are for compliance & printing — the calculation uses the linked Tax Profile; the NCM/HSN/CST appear on the legal invoice.
Where to go next
- Tax Profiles — the classification a fiscal profile carries.
- Party Tax Profiles — the party-side classification.
- Tax Rules — rules that read product fiscal profiles.
- How Tax Calculates on a Document — profiles resolved during calculation.
Frequently asked questions
Only where you need precise, code-required, or multi-rate tax — Brazil and India especially. For a single-rate country like the UK, tick Apply Default Tax on the product and use a catch-all rule instead; no fiscal profile needed.
Almost always the resolution gate: the product has no fiscal profile and Apply Default Tax is off, so the engine skips it (zero tax). Either create a fiscal profile linking it to a Tax Profile, or turn on Apply Default Tax and ensure a catch-all rule exists.
Yes — that’s the whole reason fiscal profiles are country-scoped. Create one fiscal profile per country, each linking the product to that country’s Tax Profile and carrying that country’s classification code.
Legally required product codes: NCM (Brazil’s Mercosur nomenclature) and CST (Brazil’s tax-situation/origin codes) appear on the NF-e; HSN appears on Indian GST invoices. REDA stores them on the fiscal profile so they print correctly — the tax math itself runs off the linked Tax Profile.
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