Managing Tax Codes

To track taxes, you need to specify tax codes on your transaction records. Tax codes includes information about tax rates and the types of transactions they apply to. Tax codes must be set up with the right tax control accounts and tax types so NetSuite can correctly post the taxes to your general ledger. If Advanced Taxes is enabled in your account, you also need to set up tax schedules so that NetSuite can calculate taxes for items in each nexus.

For most countries, NetSuite already provides the elements needed to track taxes when you set up your account or create a nexus.

If you've installed the International Tax Reports, when you add a new country nexus, the VAT/GST tax codes for that nexus are automatically provisioned. For details, see Automatic Tax Code Provisioning.

To understand how to edit or create tax codes, tax groups, tax control accounts, and tax types, read the following topics:

1. Tax Control Accounts Overview

   Creating a Tax Control Account

2. Tax Types Overview

   • Creating a Tax Type

   • Removing Restrictions for Tax Control Accounts

3. Tax Codes Overview

   • Tax Code Properties

   • Creating Tax Codes

   • Editing Tax Codes

   • Inactivating or Deleting Tax Codes

   • Adding Custom Fields to Tax Code Records

4. Tax Groups Overview

   • Creating Tax Groups

   • Creating a Tax Group (All Countries Except US and Canada)

5. Managing Tax Rate Changes

See also Enabling and Setting Up Taxation Features for more information about setting up tax preferences in your NetSuite account.

General Notices