SuiteTax – NetSuite’s Next Generation Tax Engine – RSM Technology Blog

Guaranteed in Life: Death & Taxes

Oracle NetSuite ’ s decisiveness to build a adjacent generation tax locomotive represents a judicious investing in functionality certain to benefit many, if not all, customers. This article introduces SuiteTax, the newly NetSuite tax engine, providing an overview of the key new features while besides identifying known limitations in the current exhaust. While the announcement has practical implications for stream NetSuite customers, it besides reaffirms Oracle ’ s commitment to NetSuite following the 2016 skill, highlighting the resources devoted to ensuring continue success of the product in years to come .

What is SuiteTax?

SuiteTax replaces existing tax functionality ( hereinafter referred to as ‘ bequest tax ’ ) and the features are not built to coexist in a unmarried environment. NetSuite developed an automatize migration process that will run on all transactions containing bequest tax data when SuiteTax is enabled in an report. ( Note – there is no GL or fiscal impact to the migration process ). Since SuiteTax and bequest tax are not intended to work together, many of the bundles developed to augment bequest tax functionality like International Tax Reports, Tax Audit Files, Supplementary Tax Calculation and Withholding Tax must besides be removed before SuiteTax may be enabled. When complete ( features are being released in phases ), SuiteTax should include most of the functionality addressed by these supplementary bundles .

Key Benefits – All Customers:

SuiteTax offers enhancements for US and International customers, including in countries with challenge tax structures like India and China. Acknowledging that third gear party solutions may be better positioned to handle building complex tax requirements, SuiteTax can work side by side with other tax engines within the same NetSuite account. Businesses are no long forced to choose between NetSuite tax or a one-third party ; they can immediately determine per nexus which tax engine will be used. This ensures that customers can pull in a specialize solution where needed but besides that they are not paying for unnecessary features or overcomplicating tax in nexuses where requirements are aboveboard .

A frequent customer complaint centers on the manual work required to update tax codes and rates in bequest tax. For businesses operating in the United States, trying to keep up with changes across 50 states and countless counties and cities is about a full time operation in and of itself. SuiteTax offers automated rate and effective date updates for all tax codes in supported nexuses, greatly reducing the effect of exploiter alimony and decreasing the risk of errors due to incorrect or expired rates. As with all standard NetSuite records, tax codes have an audited account trail allowing users to monitor any changes applied by the system .

real-time validation of tax registration numbers according to preconfigured rules set for each country. When adding a tax registration number to a customer, seller, or subsidiary company, the drug user will receive notification if the number does not match the format outlined in the dominion for that state .
SuiteTax offers greater flexibility than legacy tax where many preferences were previously entirely available at a auxiliary or entity tied. For case, in SuiteTax you can define nontaxable status per item for a customer where in bequest tax, exempt condition was maintained at the customer degree and would apply to all items sold. similarly, under SuiteTax, entities like vendors and customers can have multiple tax registrations ; bequest tax supported only one per entity .
With SuiteTax, tax details are removed from transaction lines and a fresh ‘ Tax Details ’ check is added to all transaction forms to store all tax-related fields. This redesign centralizes tax information on a single, consistent location throughout the system and reduces the indigence for users to scroll back and forth to see tax information for each line. Each line will have a newly ‘ Tax Details Reference ’ field which will identify the kinship between the transaction line and corresponding course on the tax details check .

US Sales Tax Enhancements

Enhancements to US Sales Tax calculation are available in the earliest phases of SuiteTax rollout. With release 2019.2, SuiteTax supports Zip+4 calculation logic and tax determination for origin five destination states and interstate volt intrastate sales ( California modified rule besides supported ). While not presently available, patronize for use tax is on the merchandise roadmap. When a newfangled link is added, NetSuite will automatically generate all necessary related records :

  • Tax Accounts
  • Tax Agencies (Vendor Records)
  • Tax Codes & Types (state, county, district, city)
  • Tax Groups (group of tax codes applicable to Zip+4 location)

Tax holidays are supported through new detail non-taxability rules, allowing optional stimulation of start/end dates for item non-taxability, reducing manual care required.

A new criminal record type called ‘ US Exemption Certificate ’ enables storage of customer exemption certificates ( permitting multiple per customer ) and facilitates sustenance with searchable termination dates. The exemption certificates can be blanket, applying to all items or you can configure a save search to limit exemption to a predefined subset of items .

International Tax Features

The be enhancements address use cases park in countries outside of US & Canada :

  • Tax inclusive pricing – the price presented to the customer must include any tax applied to the sale. This is a requirement in countries like the United Kingdom.
  • Modified tax point date – a date other than the NetSuite transaction date may be used for tax calculation and reporting. With configuration, you can default the tax point date to fulfillment date but you may also override on an individual transaction as needed.
    • Reports can be configured to consider either the tax point date or accounting period, depending on requirements.
  • Produce tax returns (VAT, GST, etc.) in each country’s local format (not all countries supported initially). Some countries will support electronic submission from NetSuite to the tax authority. A generic tax report is available for all countries as an alternative or additional option.

SuiteTax Limitations

SuiteTax rollout will take place over respective years, with new features added in each free. presently, there are many features contrastive with the new tax engine. Most of these will be addressed in later releases but a few are features that are being deprecated and NetSuite has no plans to modify to include support for SuiteTax .

  • Prompt payment discounts (terms discounts)
  • Intercompany Journals
  • SuiteCommerce, SuiteCommerce Advanced and SuiteCommerce In Store
  • SiteBuilder (will not be supported)
  • Withholding Tax
  • MOSS (EU)
  • Multiple Shipping Routes
  • Japan Localization SuiteApp
  • SuitePromotions

There are other unsupported features not listed in this post therefore please reappraisal SuiteAnswers article ID 64724 for a accomplished list of limitations in the current release.

Conclusion

SuiteTax is an exciting newfangled feature with the electric potential to transform tax in NetSuite. Businesses will constantly need to devote resources to tax submission but the enhancements planned for SuiteTax will reduce this effect by automating manual processes like tax code maintenance and enhancing report capability, including electronic submission of tax returns .
As of fall 2019, RSM does not believe that SuiteTax is ready for far-flung adoption. however, all NetSuite customers should educate themselves on the functionality and begin to consider a migration strategy. For steering on implementation, please reach out to the RSM NetSuite practice by contacting us at NetSuite@rsmus.com or call 855.437.7202 for an adoption strategy tailored to your company ’ s requirements .

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