Creating a Tax Type
By default, tax types use tax control accounts for posting tax amounts. You can remove this restriction if you want to use a different account from your chart of accounts as your posting account for tax. For more information, see Removing Restrictions for Tax Control Accounts.
To create a tax type:
-
Go to Setup > Accounting > Taxes > Tax Types.
-
If you are using NetSuite OneWorld, select the country from the Tax Types page.
-
On the New Tax Type page, enter a name or abbreviation for this tax type.
-
Enter a description of this tax type.
-
Check the OSS box if this tax type is for tracking VAT on B2C digital services based on the customer’s country. The OSS tax type is tracked separately from normal VAT.
Note:The OSS box is displayed only when the EU One Stop Shop feature is enabled in your account. For more information, see EU One Stop Shop (OSS).
-
In the Liability/Sales Tax Account field, select the tax control account to which NetSuite posts tax collected on sales.
-
In the Asset/Purchase Tax Account field, select the tax control account to which NetSuite posts tax on purchase transactions.
Note:For US, there is no asset/purchase tax account.
-
Click Save. When a tax code of this type is applied to a transaction, NetSuite posts the tax to the proper tax control account.
Tax types and tax codes are created separately. Transactions post tax to the tax control account shown on the tax code record. Changing the tax control account on the tax type record does not automatically update the tax control account shown on the tax code record. Editing the tax type record to change its tax control account requires you to also edit and save the tax code records that share the tax type.