1. Accounting
  2. Taxation
  3. Legacy Tax
  4. Managing Tax Codes
  5. Tax Types Overview
  6. Creating a Tax Type

Creating a Tax Type

By default, tax types use tax control accounts for posting tax amounts. You can remove this restriction if you'd rather use another 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:

  1. Go to Setup > Accounting > Taxes > Tax Types.

  2. If you're using NetSuite OneWorld, select the country from the Tax Types page.

  3. On the New Tax Type page, enter a name or abbreviation for this tax type.

  4. Enter a description for this tax type.

  5. 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 only shows if you've enabled the EU One Stop Shop feature in your account. For more information, see EU One Stop Shop (OSS).

  6. In the Liability/Sales Tax Account field, select the tax control account where NetSuite posts tax collected on sales.

  7. In the Asset/Purchase Tax Account field, select the tax control account where NetSuite posts tax on purchase transactions.

    Note:

    For US, there's no asset/purchase tax account.

  8. Click Save. When you apply a tax code of this type to a transaction, NetSuite posts the tax to the proper tax control account.

Important:

Tax types and tax codes are created separately. Transactions post tax to the tax control account shown on the tax code record. If you change the tax control account on the tax type, it doesn't automatically update the tax control account on the tax code. You need to also edit and save any tax code records that share that tax type.

Related Topics

General Notices