Sales Taxes
NetSuite POS defaults the sales tax charged to customers to the rate in your location’s tax jurisdiction. The application chooses the tax jurisdiction from the zip code or other postal code at your store. However, you can set the transaction tax rate to zero for tax-exempt organizations such as non-profit charities.
Make a Transaction Tax Exempt
Follow these steps to specify that a customer is legally tax exempt and should have no sales tax applied. This requires that the customer show proof of their organization’s exempt status by providing their tax exemption certificate or number.
You must select a Reason Code to describe the exemption. If no Reason Code is available, the Tax Exempt button will not function. Your NSPOS administrator can set up reason codes.
To make a transaction tax exempt:
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Begin the sales transaction.
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Under Other Functions, tap Tax Exempt.
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If not already done, find and select the Customer.
This is required for tax exempt transactions. See Add Customers to a Sales Transaction.
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At the Enter the tax exemption certificate ID prompt, enter the authorized state or local sales tax exemption number and tap the green check mark.
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Choose a Tax Exemption Reason Code and tap Select. For example, choose Non-Profit.
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In the transaction summary area, verify that no tax ($0.00) is applied to the transaction.
Tax by Zip Code — Apply a Different Jurisdiction’s Tax Rate
The ability to apply a different tax rate requires configuration by NetSuite|Oracle Professional Services. Attempting to apply a different rate without the correct setup could result in incorrect taxes being calculated.
Follow these steps to apply the tax rate for another jurisdiction to the current sales transaction. A tax jurisdiction is a city, county or other region with distinct tax regulations. For example, each city usually has its own sales tax rate.
Do this if the customer’s business pays taxes outside of your store’s jurisdiction. For example, branch offices operating locally may pay taxes through a corporate office found in a different state.
This feature requires that your system administrator maintain up-to-date tax tables arranged by U.S. zip code or other applicable postal codes. The following is written for U.S. setups.
To apply a different tax rate:
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Begin the sales transaction.
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Under Other Functions, tap Tax by Zip Code.
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At the Enter the 5-digit zip code to use for tax calculations prompt, enter the zip code for the applicable tax jurisdiction and tap Enter.
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If not already done, optionally find and select the Customer.
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In the transaction summary area, verify the correct tax jurisdiction is applied to the transaction.