Good day, I agree with the above statement from Tiany, vendor and customer settings should have priority over the item settings

Thank you for you replies,

Like tiany mentioned in the reply above the vendor and customer settings should have priority over the item settings. If not setting has been entered than the default tax ID setting like it is now should be used.

If there is a different setting on a vendor or customer profile than that ID should override the default setting.

@fjm61 

In your case, I would probably configure two tax zones (Domestic and International) and assign the local customers and vendors to the Domestic zones and the foreign ones to the International zone.

If all the items you sell locally are subjected to VAT 15%, then you probably need to configure a single tax category TAXABLE and assign it to the inventory items. Also, you may want to select it as a default category for the both tax zones on the Tax Zones form. Then the system will use it by default in the document lines without inventory item specified.

VAT 15% needs to be included in the Domestic tax zone and in the Taxable tax category; input VAT 0% and output VAT 0% should be included in the to the International zone and in the Taxable tax category.

With the configuration described above, you won’t need to select the tax zones or tax categories manually in the documents. The system will take the tax zone from the customer or vendor and the tax category from the item (or it will the default tax category set for the tax zone, if the item is not selected).

The taxes included into the both tax zone and the tax category will be calculated for the line. You can review the calculated taxes on the Tax Details tab on the data entry forms.

In my opinion the tax setting of the foreign customer and vendor should have priority over the tax setting of the stock item.

NO, documents use intersection between Tax zone and Tax categroy