Managing Tax Codes

To track taxes, you must specify tax codes on your transaction records. Tax codes contain information about tax rates and the types of transactions that the tax codes should be applied to. Tax codes must be set up with the right tax control accounts and tax types so that NetSuite can correctly post the taxes to your general ledger. For accounts with Advanced Taxes enabled, tax schedules must also be set up to determine how NetSuite calculates taxes for items in each nexus.

For most countries, the various elements used to track taxes in NetSuite are already provided for you when you get a NetSuite account or create a nexus.

If you have the International Tax Reports installed in your account, then 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

  3. Tax Codes Overview

  4. Tax Groups Overview

  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.

Note:

For information about withholding tax setup preferences, tax codes, tax groups, and tax types, read the Withholding Tax topic.

Related Topics

General Notices