Learn how to create a tax schedule to tax items in different nexuses.

Tax schedules determine how NetSuite calculates taxes for items in each nexus. Most countries charge goods and services at the same rate across the entire country, but in the case of the United States and Canada, where some goods and services are not taxable in certain states or provinces, tax schedules are useful.

1. Go to Setup > Accounting > Tax Schedules > New.
2. Enter a name for the tax schedule in the Product field and a description in the Description field.
3. Select the nexuses where goods and services with this tax schedule will be taxable.
   • If you have nexuses in the United States, click the US Nexuses tab and select the checkbox in the Taxable column for each state.
   • If you have nexuses outside of the United States, click the Non US Nexuses tab and select the sales and purchase tax codes to be used when charging customers with shipping addresses in these nexuses.
4. Click Save.

You can select the tax schedule you created on an item record on the Accounting tab in the Tax/Tariff Information section.