1. Accounting
  2. Taxation
  3. SuiteTax
  4. General SuiteTax Topics
  5. Understanding How the Nexus is Determined on Transactions in SuiteTax

Understanding How the Nexus is Determined on Transactions in SuiteTax

SuiteTax enables you to use different tax engines to calculate tax for each of your nexuses. For each sale or purchase transaction, NetSuite determines which nexus to use, and triggers the appropriate tax engine to calculate the tax amounts.

Note:

A nexus that is marked as tax-exempt does not have an assigned tax engine. If the nexus determined on the transaction is marked as tax-exempt, taxes will not be calculated.

Make sure that you have selected the correct tax calculation engine for each nexus on the subsidiary record. For more information, see Assigning Tax Registrations to a Subsidiary in SuiteTax.

Tax engines need to be set up using plug-in implementations. Contact your NetSuite account manager for information about tax engine implementations.

After enabling the SuiteTax feature, you will see some changes to the transaction forms. The changes include the addition of the following fields on a new Tax Details subtab:

Each nexus should have a tax registration number on the Tax Registrations subtab of the subsidiary record. You can enter duplicate nexuses with different tax registration numbers for the subsidiary, if the nexus validity dates do not overlap. For more information, see Assigning Tax Registrations to a Subsidiary in SuiteTax.

The Nexus field and the Subsidiary Tax Reg. Number field on the transaction are automatically populated by NetSuite based on the nexus lookup logic. For more information, see Nexus Determination Lookup Logic in SuiteTax.

You can override the values that NetSuite automatically selects in the Nexus and Subsidiary Tax Reg. Number fields, if you have at least the Edit level of the Tax Details Tab permission. For information about SuiteTax permissions, see Roles and Permissions in SuiteTax. To override the transaction nexus and subsidiary tax registration number, check the Nexus Override box on the Tax Details subtab. When you select a different nexus, the corresponding subsidiary tax registration number is automatically selected. When you select a different subsidiary tax registration number, the corresponding nexus is automatically selected. If there is more than one tax registration number for the nexus, the date of the transaction determines the tax registration number to be used based on the nexus validity dates set on the subsidiary record. Tax registrations that are not valid on the date of the transaction are ignored by the nexus lookup logic and are not available for selection on nexus override.

For information about tax details override, see Tax Details on Transactions in SuiteTax.

General Notices