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Taxes on Shipping

edited Jun 21, 2013 8:09AM in Accounting / ERP 5 comments

Our shipping item rule "Charge Tax on this shipping portion of item" for our shipping item is set to false. Our customers have a default tax code on the customer record because we charge taxes on items (but not on the shipping portion).  Regardless, NetSuite still calculates taxes on shipping.  Gold support claims that this is normal because we specifiy a tax code on the customer record.  The only way to stop the shipping from being included is to set the customer to Not Taxable. 

This doesn't make sense to me.  Has anybody experienced similar problems?

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