Create a tax code

You must specify tax codes on your transaction records in order to track taxes.

Tax codes contain information about tax rates and the types of transactions that the tax codes should be applied to.

Tax codes must be set up with the correct tax control accounts and tax types so that NetSuite can correctly post the taxes to your general ledger.

Note:

For the United States, if you have the single tax code feature enabled, you only need to create one tax code. The code should be named TWE_US.

For Canada, you must create both a GST and PST tax code for each province. You can then create a tax group to connect the two codes.

Go to Setup > Accounting > Tax Codes > New.
Click the country you want to create a tax code for.
In the Tax Name field, enter a name for this tax code.
This name will appear in the Tax Code column on sales transactions. The name should include the following elements, separated by underscores:
United States
- TWE
- Two-letter ISO country code (US)
- Two-letter state abbreviation
For example, the tax code for Massachusetts is TWE_US_MA.
Canada
- TWE
- Two-letter ISO country code (CA)
- Two-letter province or territory abbreviation
- Three-letter tax type abbreviation (GST or PST)
For example, the tax code for GST in British Columbia is TWE_CA_BC_GST.
Other
- TWE
- Two-letter ISO country code
For example, the tax code for China is TWE_CN.
Note:
For a full list of country codes, visit the ISO website.
Enter the following information:
Rate

Enter 0. The actual rate will appear on the transaction after tax has been calculated.

Tax Type
- For Canada, select GST or PST.
- For countries other than the United States or Canada, select VAT.
- For the United States, leave this field blank.
Tax Agency

Select the tax agency this tax is paid to.

Tax Account

Select the tax control account for this tax code.

State/Province
- For the United States and Canada, enter the name of the state or province that collects the tax associated with this tax code.
- For countries other than the United States or Canada, or if you have the single tax code feature enabled, leave this field blank.
If you have a NetSuite OneWorld account, select the subsidiaries that this tax code applies to and select Include Children if you want to apply the tax code to the children of the subsidiary.
Click Save.

Tax Determination

Tax Determination

Create a tax code