Setting Up Entity Default Tax Codes and Tax Groups

The SuiteTax Engine enables you to define a default tax code or tax group for an entity record in NetSuite. The SuiteTax Engine uses this information to automatically determine the tax codes or tax groups when transacting with a specific entity. See Tax Code Lookup Logic for VAT Countries.

Entity tax codes or tax groups are optional. Use the default tax code or tax group for an entity record only when you use a specific tax code or tax group for a customer or vendor.

To set up entity default tax codes or tax groups :

1. Go to the entity records list.

   • For Customers, go to Lists > Relationships > Customers.

   • For Vendors, go to Lists > Relationships > Vendors.

2. Click Edit next to the record you want to update.

3. Click the Financial subtab.

4. Click the Tax Registrations subtab.

5. Enter information as necessary, with one country per line:

   • In the Country column, select a country.

   • In the Tax Reg. Number column, enter the tax registration number of the entity in the selected country.

   • (Optional) In the Exempt column, check the box to indicate that this entity is exempt from taxes in that particular country.

   • In the Default Tax Code/Group field, select a default tax code or group for this registration number. The SuiteTax automatically uses this default tax code or group on the specified entity’s transactions, as long as the code or group is compatible with the transaction nexus.

     Note:

     If the entity default tax group applies, the SuiteTax Engine uses only sales tax codes from the group on the transaction.

General Notices