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 don't apply to all transactions in the same way. Some taxes only apply to services, others to goods. Local governments may restrict taxes to specific types of business or establish special tax regimes.

Tax determination rules records let you define the conditions to calculate taxes for NetSuite transactions based on information such as subsidiary and items involved. Leaving fields blank can affect how a rule applies in different ways. Read the instructions for each field before you create rules.

Create tax determination rules according to your taxation scenarios. Be aware that you may not need different rules for similar scenarios, depending on what differentiates them.

For example, if a tax applies at the same tax rate and conditions for multiple item codes, don't create separate otherwise identical rules for each item code. Instead, create one rule and leave the Item Code field blank.

To create tax determination rules:

Go to Setup > Latam Tax Determination > Tax Determination Rules > New.
Under General Information, enter the basic details that you want NetSuite to consider for tax determination:
1. In the Name field, enter a name to identify these tax determination rules.
2. (Optional) To apply the rules 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 don't 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) To apply the rules 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 apply to transactions 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) To apply the rules 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 details about the issuer of the transaction that you want NetSuite to consider for tax determination.

For more information, see Adding Issuer Information to Tax Determination Rules.
Under Receiver Information, add details about the receiver of the transaction that you want NetSuite to consider for tax determination.

For more information, see Adding Receiver Information to Tax Determination Rules.

Important:
Leaving all issuer and receiver information blank leads to rules applying only to subsidiaries, customers, or vendors that don't have any tax regime or line of business set.
Click Save.
Add tax determination settings.

For more information, see Creating Tax Determination Settings in the SuiteTax Latam Engine.

To create tax determination rules:

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