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Why is tax not calculating in NetSuite?

Overview

When running a sales order tax is not calculating.

Environment

NetSuite    

Resolution

  • Ensure the 'Default Tax Code' for United States is populated with 'AVATAX'.  In NetSuite, go to 'Setup' > 'Accounting' > 'Set Up Taxes'. 
  • Ensure 'TAXABLE' is checked and Tax Item is 'AVATAX' on the customer card/record (Financial tab).
  • Ensure line item Tax Code field is set AVATAX
  • Ensure the item is not mapped to a non-taxable tax code.
  • Ensure the customer doesn't have an exemption certificate in AvaTax/CertCapture
  • Ensure the AvaTax tab on the customer record does not have anything populated in the Exemption Certificate No. field.
  • Ensure Nexus is enabled for the ship to address/location in AvaTax Update.
  • Enable 'Per Line Taxes on Transactions' in NetSuite. Go to Setup > Company > Setup Taxes.
    • Once 'Per Line Taxes on Transactions' is enabled. Create a brand-new Sales Order/Invoice. Do not copy an existing Sales Order/Invoice.
    • Native NetSuite 'Tax' column on line item on invoice will be replaced with 'Tax Code' column.
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