United States Specific Tax Settings
US Exemption Certificates
Sales Tax Exemption Certificates enable a purchaser to make tax-free purchases that would normally be subject to Sales Tax. The SuiteTax Engine provides support for tracking the tax exemptions allowed by respective US states. Exemption certificates are considered for tax determination
We can select the items to apply this excemption in the certificate.
Item Non-Taxability Rules
Item Non-taxability Rules allows users to create a list of items that are generally non–taxable in a specific nexus. Item Non–taxability rules can be created, edited, and viewed on the Non–Taxability Rules page or the Nexus page
US Use Tax (Purchase Tax for US Nexuses Only)
Please be aware of the following items regarding the current US Use Tax (Purchase Tax) capabilities:
The NetSuite SuiteTax Engine automatically provisions US Use Tax Codes.
There is no automated tax code lookup for US Use Tax. You must apply such taxes on purchase transaction using the Tax Details Override setting.
You must create your own reports and searches using the available analytic tools.
Withholding Tax Setup (For VAT Countries Only)
SuiteTax only supports the accrual basis of tax recognition. For withholding taxes recognized upon payment, you can assign a deferral tax liability/receivables account when you set up tax types. A manual reclassification journal to the actual withholding tax liability or receivables account must be done when the invoice or bill is paid. SuiteTax does not support deferral taxes (taxes posted upon payment).
Non-Deductible Standard VAT (For VAT Countries Only)
A VAT-registered business can usually reclaim VAT on purchases and payments made to VAT registered suppliers.
Non-Deductible Reverse Charge (For VAT Countries Only)
This is a case of non-deductible tax where the transaction is qualified under Reverse Charge mechanism.
It is where the recipient of the goods or services is liable to pay tax instead of the supplier