Creating Tax Determination Rules in the SuiteTax Latam Engine

Note:

To access the SuiteTax Latam Engine SuiteApp documentation in other languages, do the following:

To access the documentation in Brazilian Portuguese (Português do Brasil), see SuiteTax Latam Engine.
To access the documentation in Spanish, select Español (Latinoamérica) from the dropdown list at the top right corner of the NetSuite Help Center.

In general, taxes do not apply to all transactions in the same way. Some taxes only apply to services, others to goods. Local governments may restrict some taxes to specific types of business or establish special tax regimes.

To enable you to determine how taxes apply to a transaction, the SuiteTax Latam Engine provides the tax determination rules record. The record gathers information related with the subsidiary, vendor, customer, or items involved in the transaction.

Create as many tax determination rules as needed to fit into your taxation scenarios.

To create tax determination rules:

Go to Setup > Latam Tax Determination > Tax Determination Rules > New.
Under General Information, enter the information that you want NetSuite to consider in the tax information process:
1. In the Name field, enter a name to identify these tax determination rules.
2. (Optional) If the rules apply only after NetSuite processes another tax determination rules record, in the Parent Tax Determination Rules field, select the parent rule.
  
  When you define a parent for the tax determination rules record, it becomes a child record.
3. In the Subsidiary field, select one or multiple subsidiaries to which to apply the tax determination rules.
  
  If you leave this field blank, the rules do not apply to any transaction.
4. (Optional) To apply the rules to transactions that use operation codes, in the Operation Code field, enter the value that identifies the operation.
  
  Be aware that you need to map a transaction field with which the system should match the operation code. If you leave this field blank, the rules apply only to transactions with no operation code. For more information, see Creating Tax Information Mapping Records.
5. (Optional) If the rules apply to a specific class of goods or services, in the Item Code field, select an item code.
  
  If you leave this field blank, the rules can apply to any transaction with any code. For more information about item codes, see Creating Item Codes in the SuiteTax Latam Engine.
6. In the Effective From field, enter or select the date the tax determination rules start being effective.
7. (Optional) If the rules apply to a limited period of time, in the Effective Until field, enter or select the date the tax determination rules stop being effective.
  
  After the end of their effective period, the rules are no longer taken into account in the tax determination process.
Under Issuer Information, add information about the issuer of the transaction that you want NetSuite to consider in the tax determination process:
1. If the rules apply to transactions from businesses from a specific country, in the Country field, select the country in which the issuer of the transaction is located.
  
  If you leave the country of the issuer blank, the rules can apply to transactions from any country.
2. If the rules apply to transactions from businesses from a specific state, in the State field, enter the name of the state in which the issuer of the transaction is located.
  
  If you leave state of the issuer blank, the rules can apply to transactions from any state.
3. If the rules apply to transactions from businesses from a specific city, in the City field, enter the name of the city in which the issuer of the transaction is located.
  
  If you leave city of the issuer blank, the rules can apply to transactions from any city.
4. To apply the rules to transactions from businesses that adhere to a tax regime, in the Tax Regime field, select the tax regime to which the issuer of the transaction adheres.
  
  If you leave the tax regime blank, the rules apply to transactions that involve issuers that do not have a tax regime set in their customer, vendor, or subsidiary record.
5. To apply the rules to transactions from businesses that perform a certain economic activity, in the Line of Business field, select the line of business that the issuer of the transaction operates in.
  
  If you leave the line of business blank, the rules apply to transactions that involve issuers that do not have a line of business set in their customer, vendor, or subsidiary record.
Under Receiver Information, add information about the receiver of the transaction that you want NetSuite to consider in the tax determination process:
1. If the rules apply to transactions to businesses from a specific country, in the Country field, select the country in which the receiver of the transaction is located.
  
  If you leave the country of the receiver blank, the rules can apply to transactions to any country.
2. If the rules apply to transactions to businesses from a specific state, in the State field, enter the name of the state in which the receiver of the transaction is located.
  
  If you leave the state of the receiver blank, the rules can apply to transactions to any state.
3. If the rules apply to transactions to businesses from a specific city, in the City field, enter the name of the city in which the receiver of the transaction is located.
  
  If you leave the city of the receiver blank, the rules can apply to transactions to any city.
4. To apply the rules to transactions to businesses that adhere to a tax regime, in the Tax Regime field, select the tax regime to which the receiver of the transaction adheres.
  
  If you leave the tax regime blank, the rules apply to transactions that involve receivers that do not have a tax regime set in their customer, vendor, or subsidiary record. For more information about tax regimes, see Creating Tax Regimes in the SuiteTax Latam Engine.
5. To apply the rules to transactions to businesses that perform a certain economic activity, in the Line of Business field, select the line of business that the receiver of the transaction operates in.
  
  If you leave the line of business blank, the rules apply to transactions that involve receivers that do not have a line of business set in their customer, vendor, or subsidiary record. For more information about lines of business, see Creating Lines of Business in the SuiteTax Latam Engine.
Click Save.

After you create a tax determination rules record, you should complete it by creating tax determination settings records. For more information, see Creating Tax Determination Settings in the SuiteTax Latam Engine.

To create tax determination rules:

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