1. Country-Specific Features
  2. Canada Help Topics
  3. Canada Tax Topics For Accounts Without SuiteTax
  4. Creating Tax Codes - Canada

Creating Tax Codes - Canada

It is important to create tax codes for several reasons:

For more information about tax codes, see Tax Codes Overview.

To create a tax code for Canada:

  1. Go to Setup > Accounting > Taxes > Tax Codes > New.

  2. If you are using NetSuite OneWorld, click the Canada nexus link.

  3. In the Tax Name field of the Tax Code page, enter a name or an abbreviation for this tax code .

    This code appears in the Tax Code column on sales transactions.

  4. In the Display Name/Code field, enter a name or code that NetSuite should display instead of the name entered in the Tax Name field. For example, if you enter PST in the Tax Name field, you can enter Provincial Sales Tax in the Display Name/Code field.

  5. Enter a description for this tax code.

  6. In the Rate field, enter the tax percentage that the nexus, or jurisdiction, charges on an item with this tax code.

  7. In the Province field, enter the name of the province that collects the tax associated with this tax code.

  8. In the Tax Type field, select a tax type (for example, GST or PST) for this tax code.

  9. Select the tax agency to which your company pays this tax.

    You can set up vendor records for tax agencies. For more information, see Setting Up Tax Agencies as Vendors.

  10. In the Purchase Tax Account field and Sales Tax Account field, select the general ledger account for this tax code.

  11. Check the Exclude from Tax Report box if you do not want this tax code reflected in tax reports.

  12. Clear the Inactive box to make this tax code available on transactions.

  13. Click Save.

Now, you can add this tax code to a transaction or tax group.

Important:

The Tax Type field on the tax code record can no longer be changed if the tax code has already been added to a tax group.

You can create tax codes for customers that are exempt from paying Provincial Sales Tax (PST).

To do this, you first create a 0% tax code for the PST.

To create a 0% PST tax code:

  1. Go to Setup > Accounting > Taxes > Tax Codes > New.

  2. If you are using NetSuite OneWorld, click the Canada nexus link.

  3. In the Tax Name field of the Tax Code page, enter a name or an abbreviation for this tax code.

  4. In the Display Name/Code field, enter a name or code that NetSuite should display instead of the name entered in the Tax Name field. For example, if you enter PST in the Tax Name field, you can enter Provincial Sales Tax in the Display Name/Code field.

  5. In the Description field, enter a description for this tax code.

  6. In the Rate field, enter 0%.

  7. In the Tax Type field, select PST.

    For more information about Tax Types, see Tax Types Overview.

  8. Select the tax agency associated with this type of tax.

  9. Select the tax control account that you want to use to track this tax on purchases and on sales.

  10. Click Save.

Now, you can create a new tax group to apply to PST-exempt customers. On the tax code record, select the province and the Goods and Services Tax/Harmonized Sales Tax (GST/HST) item you want to apply with this tax code. In the PST field, select the 0% tax PST tax code you created, and click Save.

For more information, see Setting Tax Preferences for Canada and Paying Provincial Sales Tax – Canada.

In the Tax Code for Out-of-Province Sale field on the Canada tab at Setup > Accounting > Taxes > Set Up Taxes, you can select a tax code to apply to orders placed by PST-exempt customers.

Related Topics

General Notices