When comparing the Legacy taxation with SuiteTax in US perspective, we need to consider the following points:
- If there are subsidiaries in other countries too, their compatible tax methodology needs to be identified.
- If there are multiple tax registrations for a single subsidiary, we need SuiteTax for the same. The same goes for its customer and vendors.
- Tax rate updation needs to be done manually for each state using the ‘Run the State Tax Import table’ in Legacy taxation whereas the rates are updated automatically in SuiteTax for US and 111 other countries.
- Exemption certificates are not available in Legacy but the same is supported in SuiteTax.
- Since SuiteTax is an irreversible feature, we need to consider any incompatible features before deciding to implement SuiteTax in the account.
- International Tax Reports SuiteApp, which provides various GST and VAT reports, is not compatible with the SuiteTax feature.
Both Legacy and SuiteTax has its own merits and demerits. The decision will be entirely dependent on the business requirements, regulatory mandates, and future business expansion plans.
The differences between legacy tax and SuiteTax in supporting different features are illustrated in the below article:
Differences between SuiteTax and Legacy Tax