Creating Tax Determination Rules for Specific CFOP, MCN, or Service Codes

Note:

To access the SuiteTax Latam Engine - Brazil Records documentation in Brazilian Portuguese (Português do Brasil), see SuiteTax Latam Engine - Brazil Records.

To cover taxation scenarios that apply to specific items involved in your transactions, you can create tax determination rules records targeted at the following types of codes:

Mercosur Common Nomenclature (MCN) or service codes
Código Fiscal de Operações e de Prestações (CFOP) codes

For example, you can create rules to apply a lower or zero IPI tax rate on products with MCN codes entitled to a tax benefit.

Before you create tax determination rules applicable to specific codes, do the following:

If you want to apply the rules to MCN or service codes, ensure you associated the code with the items to which the rules should apply.

For more information, see Creating Items for Brazil.
If you want to apply the rules to CFOP codes, you may want to create specific CFOP code records.

For more information, see Creating CFOP Codes.

To create tax determination rules for specific CFOP, MCN, or service codes:

Go to Setup > Latam Tax Determination > Tax Determination Rules > New.

Tip:
To cover similar scenarios, copy an existing tax determination rules record and only adjust the fields you need instead of creating a new record.
Fill the relevant information.

For more information, see Creating Tax Determination Rules in the SuiteTax Latam Engine.
To apply the rules to an item associated with a specific MCN or service code, in the Item Code field, select the MCN or service code.
To apply the rules to items with a specific CFOP, in the Operation Code field, enter the name of the CFOP code record.
Click Save.
Click the Settings subtab.
Click New Tax Determination Settings.
In the Rate field, enter the percentage at which the tax applies.
In the Tax Code field, select the tax code to which the settings apply.
Fill any additional information relevant to your tax scenario.

For more information, see Creating Tax Determination Settings in the SuiteTax Latam Engine and Parameter Types for Brazil.
Click Save.

To create tax determination rules for specific CFOP, MCN, or service codes:

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