SuiteTax Engine

Note:

The SuiteTax Engine does not support SuiteScript 2.1. To use the full functionality of the SuiteTax Engine, you must use SuiteScript 2.0. For more information about the differences between SuiteScript 2.0. and SuiteScript 2.1., see Differences Between SuiteScript 2.0 and SuiteScript 2.1.

This documentation is for NetSuite accounts with the SuiteTax feature enabled. For accounts without SuiteTax, see Legacy Tax.

The SuiteTax Engine is a SuiteApp developed by NetSuite using the SuiteTax plug–in. For more information, see General SuiteTax Topics.

The SuiteTax Engine greatly reduces the risk of non-compliance for companies with VAT and sales tax obligations and entities doing businesses in different parts of the world.

The SuiteTax Engine helps business meet the tax determination and reporting requirements. The SuiteTax Engine includes the following functionalities:

Automatic creation of tax records, such as tax agency, tax types, and tax codes
Automatic tax rates updates (with effective dates)
VIES validation for EU tax registration numbers
Format validation for non-EU tax registration numbers
Default tax codes for nexus, items, and entities (for VAT countries)
Entity default Tax Groups for United States.
Tax calculation for Canada.
Tax determination logic for both origin and destination based states and intrastate and interstate sale (for United States)
ZIP+4 accurate tax determination (for United States)

To install and enable the SuiteTax Engine, see the following topics:

To set up and use the SuiteTax Engine, see the following topics:

The following are not yet supported with the SuiteTax Engine:

Differentiation between the consumer's use tax and seller's use tax rates. These use tax rates are usually identical, but if they are not, only the general use tax rates (for consumers) are supported.
Specific rules for taxation of interstate sale to the state of Illinois (IL). For example, differentiating between sellers seated in IL, sellers with physical presence in IL, and sellers with an economic nexus in IL for determination of correct rate and place of taxation).
Tax determination for line level location. The SuiteTax Engine determines the tax based on header level location and header or line level shipping address. For more information, see Multiple Shipping Routes.

Note:
With multiple line level shipping address, each line must have the same nexus for the transaction to be saved.
Withholding tax.

Note:

The SuiteTax Engine supports only general taxation use cases. Special taxation rules for particular items or industries are not supported.

For VAT countries, it is possible to define specific rules. However, for US nexuses, it is not possible to define item-specific taxes, or different tax rates for particular items.

Note:

The SuiteTax Engine cannot be used on Brazil and India nexuses. For more information about our solutions for tax calculation for Brazil and India, see Brazilian Hub and India Localization SuiteTax Engine.

Partner Tax Engines

SuiteTax also gives customers an opportunity to choose one of our Partner Tax Engines. For more information on Partner Tax Engines, see Related Topics.

Please consider the following points when implementing a Partner Tax Engine:

Partner Tax Engines need to be able to support all taxable transaction types.
Partner Tax Engines need to be assigned to a specific tax registration or a nexus.
If a transaction is not used for recording tax, Partner Tax Engines can return empty tax results with no tax details and zero tax.
Partner Tax Engines need to know the tax rules for a specific tax jurisdiction or a nexus they are assigned to.

To leverage the NetSuite platform and development tools to build custom SuiteApps solutions for deployment into customer accounts, independent software vendors must consult the necessary development principles described in SuiteApp Architectural Fundamentals & Examples (SAFE Guide) Version 2020.1.

This is the list of our partner tax engines:

Note:

TaxJar is no longer a SuiteTax partner as of September 2022. However if you are an existing customer, you can still use the TaxJar engine.