Map Sales Tax Locations by Group or Code
In NetSuite Point of Sale (NSPOS), we calculate sales tax and value added tax (VAT) through custom RA-TaxSchedule records you create in NetSuite. This enables setting tax rates by location and assigning rates to item records. It is helpful for products that may be taxable in one jurisdiction, but have a different tax status in another.
Note that tax groups and codes, RA-TaxSchedules, and location records are all closely linked. You can set up tax groups or codes for locations within an RA-TaxSchedule definition, or you can set these up from a location record. Tax codes are helpful for doing business in countries and other jurisdictions that require codes instead of groups.
Availability varies by country. Some implementations may require assistance from NetSuite Professional Services.
To allow for tax updates, the store Location > Address > Country must be set for each location.
To prevent tax issues with item returns after setting up new tax groups or codes, NetSuite recommends that you do not delete or inactivate old tax groups or codes.
When a shopper returns an item for a refund, NetSuite ERP uses the tax group or code in place during the original sale to process the refund transaction. If the group or code is not available, NetSuite ERP considers the transaction to be invalid and rejects the transaction import from the server.
The transaction becomes “stuck” on the server, with the send / rejection cycle repeating each night. Keep all previous tax groups and codes active until you are certain that no future transactions will require them.
Due to complexities with implementing the Canadian goods and services tax (GST), NetSuite Professional Services must configure all Canadian sales tax setups.
To create a new RA-TaxSchedule:
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Log in to NetSuite as an administrator.
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Go to Customization > Lists, Records, & Fields > Record Types.
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Locate the RA-TaxSchedule row.
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Click New Record.
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Complete the fields at the top.
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Name – Name for your new schedule.
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Receipt Text – Two-character code identifying the category of goods related to the tax schedule. For example, enter GR for groceries.
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Description – Brief description of the schedule. Include any special considerations up to 255 characters.
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For each location that should use the new schedule, select the Tax Code/Group.
You can search by entering the first portion of the Tax Code or Group name. You can also click the down arrows and choose List.
Tip:If a Tax Group and a Tax Code share the same name, the first entry in the list is the Tax Group.
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Click Save.
If you have many locations and make a large number of changes at one time, NetSuite will periodically prompt you to save your work.
To verify tax groups by country:
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Log in to NetSuite as an administrator.
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Go to Setup > Accounting > Tax Groups.
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Click the Country column to order the list.
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Check the Tax Groups associated with that country.
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Verify the Tax Groups and rates associated with each country as needed. To view details, click the tax group Name.
To verify tax codes by country:
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Log in to NetSuite as an administrator.
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Go to Setup > Accounting > Tax Codes.
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Click the Country column to order the list.
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Verify the Tax Codes and rates associated with each country as needed. To view details, click the tax code Name.
To define taxes for a new location:
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Log in to NetSuite as an administrator.
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Go to Setup > Company > Locations.
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Click New Location.
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Complete the required fields.
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Click the Tax Configuration subtab.
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Under Tax Schedules Configuration, select the Tax Code/Group to use for each type of tax schedule or category.
You can search by entering the first portion of the Tax Code or Group name. You can also click the down arrows and choose List.
Tip:If a Tax Group and a Tax Code share the same name, the first entry in the list is the Tax Group.
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Under Default Zero Tax Item field, select the Tax Code/Group to use when no tax should be calculated. For example, select the tax group to use when a calculation error occurs or when a purchase is made by a tax-exempt organization.
Tax groups and tax codes should be assigned on a country-specific basis.
RA-TaxSchedule record changes synchronize to NSPOS daily. Assigning new or modified RA-TaxSchedules or rates to items or locations must occur after the daily synchronization.