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New to NetSuite | Advanced Taxes: U.S. Tax Lookup Hierarchy
Building upon our previous discussion about tax preferences and the necessary settings for an accurate tax lookup for the US nexus, we will now explore step by step how the US Tax Lookup Hierarchy works if Advanced Taxes is enabled.
Below is the hierarchy of considerations that outlines how NetSuite searches for and identifies the correct tax code to apply in various transactions:
1. Tax Item under Customer record (regardless of if Taxable is true or false)
2. If the customer has a valid shipping address:
- On the Item record’s Tax Schedule = Taxable and Charge Out of District Sales Taxes = True
Clarisa De Torres | Ask a Guru
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