How to create a tax code in the NetSuite Legacy Tax Adapter for GTD

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.

To create a tax code, follow these steps:

1. Go to Setup > Accounting > Tax Codes > New.
   
   
   
   
2. Click the country you want to create a tax code for.
   
   
   
   
3. 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 format of this code must match the location-based requirements below:
   • U.S.:
     • Prefix: TWE_
     • 2 character ISO country code: US
     • 2 character state code (separated from country code with an underscore)
     • Example: TWE_US_MA

     If you have the single tax code feature turned on, you only need to create one tax code. The code should be named TWE_US.

   • Canada:
     • Prefix: TWE_
     • 2 character ISO country code: CA
     • 2 character province code (separated from country code with an underscore)
     • 3 character type code (separated from province code with an underscore): GST or PST
     • Example: TWE_CA_ON_GST
   • Nexuses outside of the U.S. or Canada:
     • Prefix: TWE_
     • 2 character ISO country code
     • Example: TWE_CN (China)

   For a full list of country codes, check the ISO website.

4. Fill in the following information:
   • Rate: Enter 0. The actual rate will appear on the transaction after tax has been calculated.
   • Tax Type: Select a tax type from the dropdown menu based on the location:
     • U.S.: No tax type required
     • Canada: GST or PST
     • Nexuses outside of the U.S. and Canada: VAT
   • Tax Agency: Select the tax agency that this tax is paid to.
   • Tax Account: Select the tax control account for this tax code.
   • State/Province: If this tax code is for the U.S. or Canada, enter the name of the state or province that collects the tax associated with this tax code. If you have the single tax code feature turned on, leave this field blank.
5. If you have a OneWorld account, fill in the following information:
   • Subsidiaries: Select the subsidiaries that this tax code applies to.
   • Include Children: Select this option if you want to include child subsidiaries.
6. Click Save.

For Canada, you must create both a GST and a PST tax code for each province. You can then create a tax group to link these two records together for each province.