Tax Code Properties

Properties that define a tax code are shown as check boxes on a tax code record.

Important:

Some of the tax code properties are displayed only if you have installed the International Tax Reports. NetSuite uses these properties to generate values on each field of the VAT or GST reports. Properties displayed on the tax code record vary depending on the country. For information, see VAT and GST Reporting.

Property

Check this box if:

Applies to Direct Cost Service Items

This tax code will be used to identify transactions involving direct costs in providing services.

Applies to Service Items

This tax code will be used for transactions related to services.

Capital Goods

This tax code will be used for transactions involving fixed assets or capital goods.

Cash Register

This tax code will be used to identify transactions where the tax invoice was issued by a cash register.

Default Code

This tax code will be selected by default on transactions.

Duplicate Invoice

This tax code will be used to identify transactions where duplicate copies of tax invoices need to be issued.

E-invoice

This tax code will be used to identify transactions where the tax invoice was issued electronically.

EC Code

This tax code is will be used for transactions with businesses or individuals in the European Community. Transactions with EC tax codes appear on the EC Sales List report.

Note:

Use this only for transactions outside your country but within the EU.

Exclude From VAT/GST Reports

This tax code will not appear on VAT or GST reports.

Exempt

This tax code will be used to indicate that whatever this code applies to is exempt from tax.

Export

This tax code will be used for international sales.

Government

This tax code will be used to identify government related transactions.

Import

This tax code will be used for transactions involving the importation of either goods or services.

Import VAT

This tax code will be used to identify transactions that are imposed taxes by the customs agency.

No Tax Credit

This tax code will be used to identify transactions that are not eligible for tax credits.

No Tax Invoice

This tax code will be used to identify transactions where a valid tax invoice was not issued or is not necessary.

Non-Deductible

This tax code will be used to identify transactions that have nondeductible tax.

Nonoperational Transaction

This tax code will be used to identify nonoperating transactions or those not made in the normal course of business.

Nonrecoverable

This tax code will be used for transactions where the tax is not recoverable from the tax authority.

Nonresident

This tax code will be used to identify transactions by nonresidents of the country.

Nontaxable

This tax code will be used to identify transactions that are not subject to the tax law.

Other Tax Evidence

This tax code will be used to identify transactions where documents other than valid tax invoices will be used as basis to claim input tax credits.

Outside Customs Territory

This tax code will be used to identify transactions that are outside customs territory.

Paid

This tax code will be used to identify transactions that are paid.

Partial Credit

This tax code will be used to identify transactions where the tax credit can only be claimed partially.

Post Notional Tax Amount

This tax code will be used to post accounting entries for notional tax amounts. If checked, you must select the debit and credit account for notional tax amounts in the Notional Tax Debit Account and Notional Tax Credit Account fields.

Note:

This property is available only on tax code records for EU member states if a value is set for the Notional Rate Derived From field. The Notional Tax Debit Account and Notional Tax Credit Account must be associated to the tax code subsidiary.

Purchaser Issued Invoice

This tax code will be used to identify transactions where the purchaser can use a self-billing tax invoice or where the tax invoice was issued by the purchaser.

Reduced Rate

This tax code will be used for transactions where the applicable tax rate is reduced from the standard tax rate.

Reverse Charge Code

This tax code will be used for transactions where reverse charge applies.

Special Territory

This tax code will be used in territories where the tax rate is different from the standard tax rate.

Special Reduced Rate

This tax code will be used for transactions that enjoy a further reduced rate which already applies to other types of transactions.

Surcharge

This tax code will be used to identify transactions that are subject to the tax law but have been suspended by a temporary legal measure.

Suspended

This tax code will be used to identify transactions where surcharges.

Triplicate Invoice

This tax code will be used to identify transactions where triplicate copies of tax invoices need to be issued.

Unknown Tax Credit

This tax code will be used to identify purchase transactions where the tax credit is determined by the usage of goods and is unknown when the transaction was made.

Related Topics

Tax Control Accounts Overview
Tax Types Overview
Tax Codes Overview
Creating Tax Codes
Adding Custom Fields to Tax Code Records
Editing Tax Codes
Inactivating or Deleting Tax Codes
Tax Groups Overview
Creating Tax Codes - U.S. Nexus
Creating Tax Codes - Canada
Creating Tax Codes - United Kingdom
Creating Tax Codes - Australia
Creating Tax Codes - Other Nexuses

General Notices