Setting Tax Determination Rules Preferences for Brazil

The predefined tax determination rules provided by the SuiteTax Latam Engine -Brazil Records SuiteApp include generic information for tax calculation in Brazil.

To use the predefined records to calculate taxes in your transactions in Brazil, you can include your company-specific information in the records. You can also create copies of the predefined records and set them up according to your business needs. For example, you can:

• Select one or multiple subsidiaries to which to apply the rules.

  If you do not select at least one subsidiary, the rules do not apply to any transaction.

• Apply the rules to companies operating in a specific line of business.

• Restrict the rules to transactions to or from a given location.

  • To restrict the rules to transactions to or from a certain country, select a country in the Country fields.

  • To restrict the rules to transactions to or from a certain state, enter the state's acronym in the State fields.

    Ensure you entered the correct acronym to enable NetSuite to match the rules with the proper state.

    For example, if the rules apply only to transactions from the state of Bahia, under Issuer Information, in the State field, enter BA.

  • To restrict the rules to transactions to or from a certain city, enter the city's name in the City fields. Also, enter the state's acronym in the State fields.

    Ensure you entered both the correct name and acronym to enable NetSuite to match the rules with the proper city.

    For example, if the rules apply only to transactions to the city of Salvador, in the state of Bahia, do the following:

    • Under Receiver Information, in the City field, enter Salvador.

    • Under Receiver Information, in the State field, enter BA.

• Apply the rules only to transactions identified by a given Código Fiscal de Operações e de Prestações (CFOP) code.

• Apply the rules only to transactions involving items identified by a certain service or Mercosur Common Nomenclature (MCN) code.

  For more information, see Creating Tax Determination Rules for Specific CFOP, MCN, or Service Codes.

• Add a parameter, such as a Código de Situação Tributária (CST) code, to further narrow down the applicability of the rules.

  For more information about parameter types, see Parameter Types for Brazil.

• Apply the rules to items with specific origin codes.

  Include the origin code as a supplementary information code in the tax determination settings from the applicable rules. For more information, see Creating Tax Determination Settings for Specific Origin Codes.

You must also keep your tax determination rules preferences up to date to comply with regulatory or business changes. The SuiteTax Latam Engine -Brazil Records SuiteApp does not provide updates for the predefined tax determination rules.

For more information about tax determination rules records, see Creating Tax Determination Rules in the SuiteTax Latam Engine.

After you set up your tax determination rules, ensure the following records are associated with the parameters to which the rules apply:

• Subsidiary

• Vendor

• Customer

• Item

For example, verify if the subsidiary and its customers are associated with the proper tax regime and line of business. Also, if the item is associated with the proper item code. For more information, see the following help topics:

• Associating Tax Regime and Line of Business With Subsidiaries, Customers, and Vendors

• Associating Item Codes With Items

General Notices