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Create tax codes and a tax group for transactions in Canada in NetSuite

This article applies to:AvaTax for NetSuite

Create a tax code to assign to your customers in the US. Then, assign the tax code in the Tax Item field on customer records. The steps are slightly different for the US.

In order to calculate tax in Canada, create two tax codes (one for GST/HST and one for PST), and then group them.

Before you begin

  • Enable Advanced Taxes in NetSuite
  • Enable nexus in NetSuite in the appropriate regions in Canada

Steps

  1. Create the GST/HST tax code.
    1. In NetSuite, go to Setup > Accounting > Tax Codes > New.
    2. Select Canada.
      The Tax Code page displays.
    3. Complete the required fields:
      • Tax Name: Enter AVATAX-GST.
      • Rate: Enter 0.00.
      • Tax Type: Select GST/HST.
      • Tax Agency: Select Avalara.
        If Avalara isn't on the list, select + to add it, and enter the following information:
        1. Company Name: Enter Avalara.
        2. Category: Select Tax Agency.
        3. Select Save.
      • Purchase Tax Account and Sales Tax Account: Select the appropriate account from the dropdown menu.
    4. Select Save.
  2. Create the PST tax code.
    1. Go to Setup > Accounting > Tax Codes > New.
    2. Select Canada.
      The Tax Code page displays.
    3. Complete the required fields:
      • Tax Name: Enter AVATAX-PST.
      • Rate: Enter 0.00.
      • Tax Type: Select PST.
      • Tax Agency: Select Avalara.
      • Purchase Tax Account and Sales Tax Account: Select the appropriate account from the dropdown menu.
    4. Select Save.
  3. Group the GST/HST and PST tax codes you created.
    1. Go to Setup > Accounting > Tax Groups > New.
    2. Select Canada.
      The Tax Group page displays.
    3. Complete the required fields:
      • Tax Code: Enter AVATAX-CAN.
      • (NetSuite OneWorld only) Subsidiary: Choose one or more subsidiaries.
      • GST/HST: Select AVATAX-GST.
      • PST: Select AVATAX-PST
    4. Select Save.
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