Overview
Assigning your products to the correct category ensures that Kintsugi applies the right tax rules during calculation and filing. This guide helps you identify which category your product belongs to and provides examples of subcategories for reference.
If you need the complete list of subcategories and system codes, you can refer to the downloadable Product Categorization Reference Sheet.
Main Product Categories
1. Digital
Products that exist, are accessed, or delivered electronically.
Examples include cloud-based applications, SaaS tools, and downloadable content.
Example subcategories:
B2B SaaS — Software-as-a-Service products for business use
Hosted Software (Server Off-Premise) — Web-hosted software platforms
Digital Content and Electronic Products — eBooks, digital art, or online media
Tip: If your customer doesn’t physically receive the product, it’s likely Digital.
2. Misc (Miscellaneous)
Used for products that don’t fit cleanly into any other category.
Examples include temporary, experimental, or custom-use product codes.
Example subcategories:
Non-Classifiable Products — Placeholder for unique or special-use items
Bundled Transactions — Mixed transactions combining products and services
Tip: Use Miscellaneous only when no other category applies. If unsure, consult your Kintsugi support manager.
3. Physical
Tangible goods that customers can touch, hold, or consume.
Includes retail products, raw materials, and manufactured goods.
Example subcategories:
General Disposable Medical Supply Products — Single-use medical supplies
Fabric Hair Accessory and Decorative Bow Products — Hair clips, ribbons, or fabric ornaments
Diapers Adult Sold at Retail — Retail-packaged adult hygiene products
Tip: If your customer physically receives, handles, or uses the product, classify it as Physical.
4. Services
Activities, labor, or expertise performed for the customer.
Includes both professional and consumer-facing services.
Example subcategories:
Professional Consulting Services — Business advisory, accounting, or management services
Entertainment Admission Services — Tickets, concert passes, or amusement park entries
Maintenance Services – Materials — Supplies used in service or repair activities
Tip: If the transaction involves performing a task or providing an experience, it belongs under Services.
How to Select a Subcategory
When categorizing your products:
Identify the product’s primary use — what the customer is actually purchasing.
Review the category’s definition and examples in this guide.
Match your product to the closest subcategory listed in your Kintsugi environment.
Apply the same mapping for all similar products to maintain consistency.
Best Practices
Review your product descriptions before assigning a category.
Avoid using Miscellaneous unless absolutely necessary.
For bundled items, choose the category that represents the main value of the sale.
Revisit your product mappings regularly to ensure tax compliance as regulations evolve.
Reference Sheet
For a complete list of subcategories (including internal codes and tax applicability), download or request the Product Categorization Reference Sheet. This reference contains:
All active category and subcategory names
Taxability notes
Real-world examples for each mapping