Automatic Tax Code Provisioning

To benefit from the automatic tax code provisioning feature, you must first install the International Tax Reports SuiteApp in your account before you create subsidiaries. In OneWorld accounts that have the International Tax Reports SuiteApp, when you add a new subsidiary country, the system creates the nexus for it and, at the same time, creates the VAT/GST tax codes for that nexus. In other words, you must have the International Tax Reports SuiteApp already installed before you add the subsidiary. (Without the International Tax Reports SuiteApp, when you create a subsidiary country, NetSuite also adds its nexus, but provides only a few default tax codes.)

Important things to note:

• For some tax codes provisioned by the International Tax Reports SuiteApp, you must set the correct value in the Available on field of the Tax Code page, because this preference is currently not automatically set by the automatic tax code provisioning feature. See Editing Tax Codes for instructions on how to do this, and read the country-specific tax topics to see the tax code tables for each country. Consult your tax agency to make sure the rates on your tax codes are correct.

• Without the International Tax Reports SuiteApp, NetSuite makes default tax codes available when a nexus is added to the account. (In some NetSuite implementations, the nexus may have already been added before the SuiteApp was installed. And when a NetSuite account is initially provisioned, the home nexus is automatically created.) You should review the tax codes and edit them or add new ones if necessary. Use the country-specific tax code tables in the Help Center for guidance on setting the correct properties. Note that The International Tax Reports SuiteApp creates VAT/GST tax codes only for the countries that it supports, because those tax codes are used to generate the tax reports. For a list of countries supported by the International Tax Reports SuiteApp, see VAT/GST Reports.

• Tax codes for nondeductible tax are not included in the automatic tax code provisioning, so you must create them manually. For more information, see Recording Nondeductible Input Tax.

• When you add a nexus for Colombia or Singapore, the tax codes are provisioned by the SuiteApp but you have to manually create additional tax control accounts and tax types, and then edit the relevant tax code to set the correct tax type. For details, see Colombia Tax Topics and Singapore Tax Topics for Accounts Without SuiteTax.

• Tax codes for Mexico are also provisioned when you add a Mexico nexus. These are used to generate the DIOT file. For more information, see Mexico Tax Topics (Mexico Compliance SuiteApp) and Tax Audit Files.

You can also create other tax codes, but be aware that these are not picked up in the VAT/GST reports if the tax codes do not follow the properties defined in the tax code matrix. So make sure that you use the correct properties for those tax codes to be picked up by the VAT/GST reports. Refer to the country-specific topics to see each country's tax code settings.

You can use any tax code name you prefer, provided you have set the correct properties for them to be picked up by the VAT/GST reports. Tax reports identify transactions by looking at the tax code properties, not the tax code names. For information about current tax rates, be sure to consult your tax agency.

Some country-specific tax topics have tables that show what goes into each box of the VAT/GST reports.

Read the following topics for more information about tax code provisioning:

• Automatic Tax Code Provisioning Workaround – Procedure for activating the automatic tax code provisioning feature if you installed the International Tax Reports SuiteApp after the subsidiary and nexus were created.

• EU One Stop Shop Tax Code Provisioning – Automatic tax code provisioning of OSS tax codes for OneWorld accounts with EU nexuses.

• OSS Tax Code Provisioning for Regular NetSuite Accounts – Procedure for provisioning OSS tax codes to non-OneWorld accounts.

General Notices