New to NetSuite | Advanced Taxes: Canada Tax Lookup – Scenarios Part 3

Continuing from our previous discussion, we will now outline scenarios for the next level in hierarchy. The setup remains the same, with the following parameters in the Customer record’s Financial tab:

• Tax Item = null
• PST Exempt box = False

In this scenario, the transaction nexus is not associated with the Canada subsidiary, but the address is located within Canada. Under these conditions, the system determines the appropriate tax by searching, in order, for:

• Tax Code for Out-of-Province Sale; if none,
• Tax Code for Exports; if none,
• Default Tax Code

For our demonstration, we will use two items in the transaction: one with a taxable schedule and the other with a non-taxable schedule.