Automatic Tax Calculation for Shipping in VAT Countries
NetSuite supports automatic tax calculation for shipping items and methods in countries with VAT. This feature follows the pattern of automatic tax calculation used for goods taxation
For example, if an entity default tax code or nexus default tax codes apply to the transaction, they also apply to the shipping method or item.
This feature also uses the regular lookup logic for goods. The diagram below shows that shipping and handling follow the same direction as goods.