Title: Nexus is part of EU and customer is outside EU Scenario: Creating a sales Order for service item. No tax code on item record. No tax code on customer record. Expected result: line should have tax OS-FR Actual result: line has tax code O-FR (wrong because this is for inventory). I investigated why O-FR is defaulted and I saw 'Set Up Taxes' page has field '_TAX CODE FOR EXPORTS_' with value O-FR. Does this mean user should manually change the tax code on the line because netsuite use default value ?

How would NS know to use OS-FR on the item unless it is on the customer, item, item schedule, or the default value for exports?

On tax code OS-FR, the checkbox APPLIED FOR SERVICES is checked. It is working fine for customers in European Union but not for international customers. And Netsuite handles tax codes automatically, you dont need to set it on customers or items.