Creating Tax Determination Rules in the SuiteTax Latam Engine

Note:

To access the SuiteTax Latam Engine SuiteApp documentation in other languages, do the following:

To access the documentation in Brazilian Portuguese (Português do Brasil), see SuiteTax Latam Engine.
To access the documentation in Spanish, select Español (Latinoamérica) from the dropdown list at the top right corner of the NetSuite Help Center.

In general, taxes do not apply to all transactions in the same way. Some taxes only apply to services, others to goods. Local governments may restrict some taxes to specific types of business or establish special tax regimes.

To enable you to determine how taxes apply to a transaction, the SuiteTax Latam Engine provides the tax determination rules record. The record gathers information related with the subsidiary, vendor, customer, or items involved in the transaction.

To create tax determination rules:

Go to Setup > Latam Tax Determination > Tax Determination Rules > New.
In the Subsidiary field, select one or multiple subsidiaries to which to apply the tax determination rules.

If no subsidiary is selected, the rules do not apply to any transaction.
(Optional) If the rules apply only after NetSuite processes another tax determination rules record, in the Parent Tax Determination Rules field, select the parent rule.

When you define a parent for the tax determination rules record, it becomes a child record.
(Optional) To apply the rules to transactions that use operation codes, in the Operation Code field, enter the value that identifies the operation.

If no operation code is entered, the rules apply to transactions that do not use an operation code. Be aware that if you restrict the rules to an operation code, you need to map the specific transaction field in which the code is entered. NetSuite uses the mapping to locate the code and consider it during the tax determination process. For more information, see Creating Tax Information Mapping Records.
(Optional) If the rules apply to a specific class of goods or services, in the Item Code field, select an item code.

If no item code is selected, the rules can apply to any transaction with any code. For more information about item codes, see Creating Item Codes in the SuiteTax Latam Engine.
(Optional) If the rules apply to transactions from businesses from a specific state, in the State of the Issuer field, enter the name of the state where the issuer of the transaction is from.

If no state of the issuer is selected, the rules can apply to transactions from any state.
(Optional) If the rules apply to transactions to businesses from a specific state, in the State of the Receiver field, enter the name of the state where the receiver of the transaction is from.

If no state of the receiver is selected, the rules can apply to transactions to any state.
(Optional) If the rules apply to transactions from businesses from a specific city, in the City of the Issuer field, enter the name of the city where the issuer of the transaction is from.

If no city of the issuer is selected, the rules can apply to transactions from any city.
(Optional) If the rules apply to transactions to businesses from a specific city, in the City of the Receiver field, enter the name of the city where the receiver of the transaction is from.

If no city of the receiver is selected, the rules can apply to transactions to any city.
In the Effective From field, enter or select the date the tax determination rules start being effective.
(Optional) If the rules apply to a limited period of time, in the Effective Until field, enter or select the date the tax determination rules stop being effective.

After the end of their effectivity, the tax determination rules are no longer taken into account in the tax determination process.
(Optional) To apply the rules to transactions from businesses that adhere to a tax regime, in the Tax Regime of the Issuer field, select the tax regime to which the issuer of the transaction adheres.

If no tax regime is selected, the rules apply to transactions that involve issuers that do not have a tax regime set in their customer, vendor, or subsidiary record.
(Optional) To apply the rules to transactions to businesses that adhere to a tax regime, in the Tax Regime of the Receiver field, select the tax regime to which the receiver of the transaction adheres.

If no tax regime is selected, the rules apply to transactions that involve receivers that do not have a tax regime set in their customer, vendor, or subsidiary record. For more information about tax regimes, see Creating Tax Regimes in the SuiteTax Latam Engine.
(Optional) To apply the rules to transactions from businesses that perform a certain economic activity, in the Line of Business of the Issuer field, select the line of business that the issuer of the transaction operates in.

If no line of business is selected, the rules apply to transactions that involve issuers that do not have a line of business set in their customer, vendor, or subsidiary record.
(Optional) To apply the rules to transactions to businesses that perform a certain economic activity, in the Line of Business of the Receiver field, select the line of business that the receiver of the transaction operates in.

If no line of business is selected, the rules apply to transactions that involve receivers that do not have a line of business set in their customer, vendor, or subsidiary record. For more information about lines of business, see Creating Lines of Business in the SuiteTax Latam Engine.
Click Save.

After you create a tax determination rules record, you should complete it by creating tax determination settings records. For more information, see Creating Tax Determination Settings in the SuiteTax Latam Engine.

To create tax determination rules:

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