1. Accounting
  2. Taxation
  3. SuiteTax
  4. SuiteTax Engine
  5. Setting Up the SuiteTax Engine for the United States
  6. Creating Non–taxability Rules for Items

Creating Non–taxability Rules for Items

The SuiteTax Engine gives you the option to create a list of items that are generally non–taxable in a specific nexus. Item non–taxability rules are considered for tax determination.

Non–taxability rules can be created, edited, and viewed on the Non–Taxability Rules page or the Nexus page. These two methods are interconnected and changes take effect on both.

Note:

You cannot add shipping items to non-taxability rules.

To create non–taxability rules:

  1. Go to Setup > SuiteTax Engine > Non–taxability Rules.

  2. Click New Rule.

  3. On the Item Non–taxability Rules page, select a nexus in the Nexus field. The Country field is set to the United States by default.

    Note:

    You can add only the active US nexus and create only one rule for the nexus. When you delete the nexus, you also delete the rule.

  4. In the Items section you can add individual items by:

    • using an item saved search

    • copying a list of non–taxable items from a nexus (items do not inherit the validity dates from the nexus)

    • choosing specific items manually from the list

    Note:

    To save the record, there must be at least one item on the list. Duplicates are not allowed. Items with different and separate validity dates are not considered duplicates.

  5. Optionally, in the Items section, enter validity dates for each item. Dates can be added manually for each item, or if the Validity Dates box is checked, the SuiteTax Engine automatically fills the validity date for all added items.

  6. Click Save.

To create non–taxability rules on the Nexus record page:

  1. Go to Setup > Tax > Nexuses.

  2. Click Edit next to the nexus for which you want to create Non–taxability Rules.

  3. On the Nexus page, click the Non–taxability Rules subtab.

  4. In the Items section you can add individual items by:

    • using an item saved search.

    • copying a list of non–taxable items from a nexus (items do not inherit the validity dates from the nexus).

    • choosing specific items manually from the list.

  5. Optionally, in the Items section, enter validity dates for each item. You can add dates manually for each item, or if the Validity Dates box is checked, the SuiteTax Engine automatically fills the validity date for all added items.

  6. Click Save.

General Notices