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We are using Managed Metadata taxonomy terms in sharepoint online.

When creating a list item, we can select a term or taxonomy.

is it possible to limit access for a list item to certain security groups based on selected term or taxonomy ???

for example:
billing_user_1 in billing security group creates a list item and selects the taxonomy called "Billing department"
billing_user_2 is able to access the same list item and change everything because he is also in billing security group
reception_user is not in billing security group, so he/she should never be able to access this list item.

I have a client that says this is possible, but I have looked everywhere for this feature or solution and im not seeing anything related to this.

thx...

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In SPD workflow, we have actions to grant/remove permission, here is an example:https://truapps.portalfront.com/how-toset-sharepoint-item-level-permissions-based-on-column-or-field-values.html

Before doing so, we need to do a bit more work to enable the workflow to run with elevated permission.

So the left problem will be getting the managed metadata value, it will a bit complex as we do not have proper built-in actions to handle metadata in SPD workflow, we will need to use some tricks or use Rest API to get what we want.

Here are some examples : https://www.advaiya.com/blog/handling-managed-metadata-using-sharepoint-list-workflow/

http://www.jrjlee.com/2015/01/getting-and-setting-managed-metadata.html

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