1. Country-Specific Features
  2. Region-Specific SuiteApps
  3. Revenue/Expense Reclassification by Region
  4. Setting Up VAT Category for Tax Codes

Setting Up VAT Category for Tax Codes

After enabling the revenue/expense reclassification by region feature in your subsidiary, you can set up your VAT category for your tax codes. This setup is needed if your country requires account reclassification using tax rates. The VAT category helps NetSuite reclassify your accounts when creating journal entries for account reclassification.

To set VAT Category in your Tax Codes:

  1. Go to Setup > Accounting > Tax Codes.

  2. Select a tax code.

  3. Click Edit.

  4. (Optional) Create a new VAT category. See Create A New VAT Category

  5. In the VAT Category drop down, select a VAT category from the list.

    • Standard Tax Rate: Rules defined with the Standard Tax Rate will apply to transactions using this tax code.

    • Reduced Tax Rate: Rules defined with the Reduced Tax Rate will apply to transactions using this tax code.

  6. Click Save.

Create A New VAT Category

The VAT Category drop down list initially has Standard Tax Rate and Reduced Tax Rate as options. If you need a different VAT category for this tax code, you can create a new VAT Category.

The following describes the steps to create a new VAT category while editing a Tax Code.

To create a new VAT category:

  1. Create a new VAT category.

    • In the VAT category dropdown, select New. Proceed to step 3.

    • Point your cursor on the VAT Category drop down field. The Add button appears beside the drop down.

  2. Click Add beside the VAT Category drop down while editing a tax code. The VAT Category window opens.

  3. In the VAT Category window, enter a name in the Name field.

  4. (Optional) Check the Inactive box to set this VAT Category inactive. This will not be selectable when setting up VAT categories.

  5. (Optional) Click Reset to clear your entry.

  6. (Optional) Click Cancel to stop creating a new VAT category.

  7. Click Save.

Once saved, the VAT Category window closes and the new VAT category is automatically selected in the VAT Category field.

General Notices