Default Tax Code for Invoices from Billable Expenses

The Tax Code when Invoicing Billable Expenses defaults to the Default Tax Code set in Setup > Accounting > Setup Taxes. It does not inherit the Tax Code set in the Expense Report or Vendor Bill. The reason for this is that NetSuite does not assume that businesses can reclaim VAT on Expenses as not all Expenses are taxable. Users have to update the Tax Code manually on  Invoice.

Billable Items behave differently. When the Enable Tax Lookup On Sales Transactions is enabled under Setup > Accounting > Setup Taxes, the Tax Codes are selected based on the Customer's Shipping Country or Nexus when Advanced Taxes is enabled (Setup > Company > Accounting > Advanced Taxes).

Related to Enhancement 132252 : Transactions > Sales > Create Invoices > Billable Expenses > Customer is requesting the billable expenses on the customer invoice are listed with the same tax code that is used on the vendor bill.