To create a tax type:
- Go to Setup > Accounting > Taxes > Tax Types.
- If you are using NetSuite OneWorld, select the country from the Tax Types page.
- On the New Tax Type page, enter a name or abbreviation for this tax type.
- Enter a description of this tax type.
- Check the OSS box if this tax type is for tracking VAT on B2C digital services based on the customer’s country. The OSS tax type is tracked separately from normal VAT.
- In the Liability/Sales Tax Account field, select the tax control account to which NetSuite posts tax collected on sales.
- In the Asset/Purchase Tax Account field, select the tax control account to which NetSuite posts tax on purchase transactions.
- Click Save. When a tax code of this type is applied to a transaction, NetSuite posts the tax to the proper tax control account.