This is a statement that is not true for the Italian legislation. Levy, ie Italian IVA, is not in any way sub-classificated in this way but in many other different ways based on the nature of the item or the service bought and sold. There are also super-classification (on top of IVA) linked to the nation of the counterpart (EU or not EU) and if they levy purchases are not recoverable, ie they should be considered a cost.
In Italy there is a clear distinction between a 0% levy and a levy exemption and are sub-classificated with an infinite list of codes. This ends up with a different % amount of the Levy Purchases you can recover.
Again in Italy we have a clear distinction between what happens before one year from the original invoice and after.
To be clear I don’t won’t to demonstrate that your wrong. Given the fact that the new engine had zero impact on my past tax declarations (but I had so many other issues linked to reporting recent change!), what I want to say is that since we live all around the world, levy taxes are similar but they are not the same. So every decision @lubos will take will make some people satisfied and other not.
I don’t think, unless we will get the possibility to program a plugin for each nation (which I won’t think will ever see the light since plugins made a quick apparition on the top menu of Manager a couple of years ago but they immediately disappeared), that we will ever have a perfect solution that will automatically achieve 100% of right classification.
I made my proposal in this thread:
It is based on my Italian experience and I think it is the most flexible.
Another solution that comes to my mind is to have a specific tax module tab in which one can check all the transactions and in which, if needed, one can make manual adjustments on some of them, ie change the rules dinamically.