This article is for NetSuite Legacy Tax users only. If you have NetSuite SuiteTax, read this article for help with configuring tax types.
Tax types determine where to track the tax paid or collected on the balance sheet. The balance sheet account to which NetSuite posts the payment or collection of tax is called the tax control account.
To configure a tax type, follow these steps:
- Go to Setup > Accounting > Tax Types.
- Click the plus sign to expand the Filters section, then select a country from the dropdown menu.
- Click Edit in the row of the tax type you want to configure.
- For nexuses in the U.S., NetSuite provides the State, County, City, and Transit tax types by default. If you want to support the Fee tax types, you must create them.
- For nexuses in Canada, you must create the PST and GST/HST tax types.
- For nexuses outside of the U.S. and Canada, you must create the VAT tax type.
- In the Accounts section, add the following:
- At least one nexus
- A Payables account and/or a Receivables Account
- Click Save.