Tax Transaction Types in the SuiteTax Engine

Note:

This section applies only to VAT countries.

The SuiteTax Engine uses transaction types to calculate tax for your transactions. The SuiteTax Engine bases these calculations on the transaction details at the time of the transaction. These are possible tax transaction types:

• For sales and purchases in the same country:

  • Domestic Sales

  • Domestic Purchases

• For sales and purchases outside the country:

  • Imports

  • Exports

• For sales and purchases within the same economic union:

  • Intra-Community Sales

  • Intra-Community Purchases

Note:

Intra-community sale and purchase transaction types are only available for nexuses in economic union member states.

After the SuiteTax Engine has determined tax transaction type, the SuiteTax Engine selects a tax code based on the following in priority order:

• Tax codes set on entity records, see Setting Up Entity Default Tax Codes and Tax Groups.

• Tax codes set in tax schedules, see Setting Up Tax Schedules.

• Default tax codes in nexus preferences, see Editing Default Tax Codes for Nexuses.

General Notices