Setting Tax Preferences for GCC States

You can set your tax preferences for the Gulf Cooperation Council (GCC) states using the Set Up Taxes page. The following preferences are available for VAT nexuses only.

To set tax preferences for a nexus:

1. Go to Setup > Accounting > Taxes > Set Up Taxes.

2. If you have more than one nexus, click the tab for the nexus that you want to configure.

3. Enable Tax Lookup on Sales and Purchases – This box is checked by default to enable NetSuite to determine appropriate tax codes to use on sales and purchases. Clear this box if you don't want NetSuite to determine the tax code using the customer's or vendor's shipping address. If you use SuiteScript to query third-party tax services, clear this box.

4. Print Tax Code Summary on Sales Forms – Check this box if you want to include a summary of the taxes by tax rate on printed transaction forms such as Estimates, Sales Orders, and Sales Invoices. The tax code summary only appears if there are two or more tax codes on the transaction.

   If you check this box, you must choose your preferred PDF layout for transaction type forms. To set your transaction form PDF layout preferences, go to Customization > Forms > Transaction Form PDF Layouts. If the Preferred box for Transaction Layout with Tax Summary is checked, NetSuite shows the tax summary as a separate element at the bottom of the form, above the totals. If you choose any of the standard or classic transaction type layouts, the tax summary appears in the main body as a part of the columns. For more information about transaction form PDF layouts, see Customizing Transaction Form PDF Layouts.

5. Only Use Tax Control Accounts on Tax Types – This box is checked by default. If you disable this preference, you can create a tax type record and select any account from your chart of accounts as your posting account for tax. After you set up the tax type, you must select it on the appropriate tax code records. For more information, see Removing Restrictions for Tax Control Accounts.

6. Foreign Trade – Check this box if your company does business with foreign companies or individuals. If checked, the system creates the Export tax code for the nexus.

7. Tax Reporting Cash Basis – Check this box if you submit your tax returns on a cash basis, instead of invoice or accrual basis.

8. Display Tax Registration Number Field in Web Store – Check this box so customers can enter their tax identification numbers when checking out of your Web store. (The label shown for this field depends on the specific name of a country's VAT registration number or Company registration number.)

9. Default Tax Code – Choose the default tax code NetSuite uses in transactions if the customer or items don't have one set.

   Important:

   The Default Tax Code field is required for all nexuses. In a OneWorld account, if you click Save and the you get a prompt to enter a value in the Default Tax Code field, you may have one or more nexuses without a default tax code. Look for this nexus, add the missing information, and click Save.

   Warning:

   If you inactivate a tax control account, you won't be able to select the tax codes associated with it when you create or edit transactions. Any default tax codes linked to it will also be invalid. Be sure to update default tax codes on all affected records such as:

   • Nexuses

   • Item records

   • Customer records

   • Vendor records

   You can also reactivate the tax control account to make the tax codes available again. For more information, see Tax Control Accounts Overview.

10. Tax Code for Exports – Select the default tax code for orders placed by international customers.

11. Tax Code for Imports: Service Items – Select the default tax code for service items bought from vendors outside the country. This code is used to show Reverse Charge tax on tax reports.

12. Tax Code for Imports: Non-Service Items – Select the default tax code for non-service items bought from vendors outside the country. This code is used to show Reverse Charge tax on tax reports.

13. Tax Code Lists Include – Choose whether to show tax codes, tax groups, or both on transactions. This preference doesn't apply to journals.

14. Preferred Tax Agency – Select the tax agency you pay taxes to.

    If you have Advanced Taxes enabled in your account, the Preferred Tax Agency field appears under the Tax subtab. On the Field Naming subtab, you can edit the field names shown on forms and in columns on search results, lists, and reports. See Customizing Tax Fields on Transaction Forms.

15. Set the tax rounding levels, methods, and precision settings for this nexus. See Setting Tax Rounding Levels, Methods, and Precision Settings.

General Notices