General International Tax Topics
You can use NetSuite to calculate, report, and pay value-added taxes (VAT) for many countries around the world, including the countries in the European Union (EU). You can define country-specific tax codes, used to calculate and report taxes, that identify basic information such as the tax percentage and the tax agency. You can also specify VAT-specific information such as whether to exclude amounts from VAT reports and whether a tax is specific to the EU.
Read the following topics for guidance:
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Setting Tax Rounding Levels, Methods, and Precision Settings
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Creating Tax Codes - Other Nexuses
Important:For information about VAT/GST tax codes used by NetSuite to track and report taxes in specific countries, read the Country-specific Tax Topics.
The following topics provide information about the tax processing elements required for administering VAT:
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Tax Accounting Overview – describes how to use NetSuite to track, calculate and pay different types of taxes
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Enabling and Setting Up Taxation Features – describes what you need to set up in your account to track your taxes
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Managing Tax Codes – describes the purpose and setup of tax types, tax control accounts, tax codes, tax groups, and tax agencies as vendors. You define these elements as part of the process of setting up NetSuite for VAT administration.
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Tax Code Properties – describes the properties used to define a tax code. Although NetSuite provides a set of predefined VAT codes, you may need to modify some of them or create new ones for your tax jurisdictions (nexuses). Country-specific help topics contain tables that show the tax codes and their corresponding tax properties.
Before you administer VAT using NetSuite, do the following:
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Set your tax preferences. See Setting Tax Preferences.
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Review your tax codes, and edit or create tax codes. See Tax Codes Overview and Creating Tax Codes - Other Nexuses.
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Set up appropriate tax types and tax control accounts. See Tax Types Overview.Removing Restrictions for Tax Control Accounts, and Tax Control Accounts Overview.
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Set up an acquisition tax code if you are an EU member state. See Creating Acquisition Tax Codes.
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Understand the impact of discounts on VAT calculation. See Applying Sales Tax or VAT to Discount Items.
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Prepare to pay VAT to the appropriate tax agencies. See Paying Tax Liabilities - Non-U.S. Editions and Nexuses.
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Review how to set up tax filing and how to generate VAT and GST reports, EU Sales List reports, and Intrastat reports. Read the following topics:
For information about Sales Tax, see the United States Tax Topics. For information about VAT/GST for specific countries, see the Country-specific Tax Topics.