Dear Sulaiman,

The letters you mentioned (S, M, T, IG) represent codes used in Belgium for different types of transactions in accounting software like Odoo. Here's what they stand for:

• M: Merchandise or Goods for Resale (Handelsgoederen / Marchandises) - This code applies to purchases and sales of goods that you intend to resell in your business. The VAT rate for these transactions typically depends on the specific product category and might be 21%, 6%, or 0%.
• S: Services (Diensten / Services) - This code is used for purchases and sales of services. The VAT rate for services is usually 21% but can be exempt in certain cases.
• T: Triangular Transactions inside the EU (ABC-verkopen / Ventes ABC) - This code is specific to a type of intra-EU transaction where you sell goods to a customer in another EU country, but the goods are shipped directly from a supplier in a third EU country. The VAT treatment for these transactions can be complex, and it's recommended to consult a tax advisor for guidance.
• IG: Investment Goods (Investeringsgoederen / Biens d'investissement) - This code signifies purchases of assets that you plan to use for your business for an extended period (typically more than one year). These assets might include equipment, machinery, or vehicles. The VAT on investment goods is usually deductible in full.

Hi Sulaiman,

Concerning the tax codes, they stand for the following:
- M: Merchandise or Goods for Resale (Handelsgoederen / Marchandises)
- S: Services (Diensten / Services)
- G: Goods (Diverse goederen / Biens divers)
- IG: Investment Goods (Investeringsgoederen / Biens d'investissement)
- EU T: Triangular Transactions inside the EU (ABC-verkopen / Ventes ABC)