Assigning Tax Registrations to a Subsidiary in SuiteTax

If SuiteTax is enabled in your account, you can assign nexuses (tax registrations) to a subsidiary. On the Tax Registrations subtab of the subsidiary record, you can set the tax registration number, validity dates, and tax calculation engine for each nexus assigned to the subsidiary.

You need to have at least the Edit level of the Subsidiaries and Subsidiary – Tax Engine Selection permissions to be able to assign tax registrations to a subsidiary. For more information, see Roles and Permissions in SuiteTax.

Nexus-Level Tax Exemption

You can now disable tax calculations for nexuses where you are not required to calculate or record taxes in SuiteTax. Nexus-level tax exemption enables you to assign nexuses to a subsidiary and classify it as tax-exempt. This will enable tax exempt businesses to skip the assignment of a tax engine to the nexus and effectively disable tax calculation on transactions for the nexus. When you assign nexuses (tax registrations) to a subsidiary, you can mark the ones that are tax-exempt. When you check the tax-exempt box for a specific nexus (tax registration), you are no longer required to select a tax engine. Taxes will not be calculated for the nexus' transactions.

Note:

If you want taxes to be calculated for the nexus, do not mark it as tax-exempt and select the tax engine to use for the nexus.

To add or remove tax registrations for a subsidiary:

1. Go to Setup > Company > Classifications > Subsidiaries.

2. Click the Edit link next to the subsidiary.

3. Click the Tax Registrations subtab.

4. To add a tax registration:

   1. Select a country.

   2. Select a nexus. Only nexuses for the selected country are available in the list.

      The Tax Agency field is automatically filled in using the value saved on the nexus record.

   3. Enter the tax registration number to use for this nexus (maximum of 30 characters).

      You can edit a tax registration number if there is no transaction associated with it. When you create a transaction and use a specific nexus and tax registration number, you can no longer edit the tax registration number.

   4. Select the tax engine to use for this nexus.

      The list shows the tax engine implementations that have been added and activated in your account.

   5. Specify a period range within which this nexus is valid for the subsidiary.

      • In the Effective From field, select a date from which this nexus is in effect for the subsidiary.

      • In the Valid Until field, select a date from which this nexus is no longer valid. You can leave this field blank to indicate that there is no end to the validity of this nexus for the subsidiary. The only time you are required to enter a date in this field is if this subsidiary is no longer registered for tax in this nexus, or the fiscal structure changed.

      These validity dates are specific to this nexus-subsidiary relationship only. When you assign the same nexus to a different subsidiary, you can specify different validity dates as applicable.

      You can also assign the same nexus with a different tax registration number to the same subsidiary, if the nexus validity dates do not overlap.

   6. Click Add.

5. To remove a tax registration:

   1. Click the row for the nexus.

   2. Click Remove.

      You can remove a nexus only if there are no transactions associated with the nexus. The system displays an error message if you try to remove a nexus from a subsidiary that has transactions associated with the nexus. If a tax registration is no longer valid for the subsidiary, you should invalidate the registration by specifying a date in the Valid Until field for the nexus, instead of removing the nexus from the subsidiary record.

6. When you have finished adding or removing nexuses, click Save.

Read the following help topics for information about nexus determination on transactions:

• Understanding How the Nexus is Determined on Transactions in SuiteTax

• Nexus Determination Lookup Logic in SuiteTax

Examples of Assigning Nexuses to a Subsidiary

Fields on the Tax Registrations subtab						Nexus Validity
Nexus	Tax Reg. Number	Tax-Exempt	Tax Engine*	Effective From	Valid Until
Nexus A	01981616	Not checked	SuiteTax Engine	January 1, 2015	(blank)	This tax registration for Nexus A is effective from January 1, 2015, with no end date, for this subsidiary.
Nexus B	12345677	Not checked	Partner Tax Engine	January 1, 2015	December 31, 2015	This tax registration for Nexus B is effective from January 1, 2015 until December 31, 2015 for this subsidiary.
Nexus B	25253621	Not checked	SuiteTax Engine	January 1, 2016	(blank)	This tax registration for Nexus B will be used for this subsidiary for transactions dated January 1, 2016 or later.
Nexus C	36362235	Not checked	SuiteTax Engine	January 1, 2016	December 31, 2016	This tax registration for Nexus C is effective from January 1, 2016 until December 31, 2016 for this subsidiary.
Nexus C	00025645	Not checked	SuiteTax Engine	March 15, 2016	(blank)	This entry is invalid because the Effective From date overlaps with the validity date of the other tax registration for Nexus C. The system will not be able to save this tax registration for this subsidiary.
Nexus D	28151321	Checked	(blank)	January 1, 2023	(blank)	This tax registration for Nexus D is effective from January 1, 2023, with no end date, for this subsidiary. Taxes are not calculated for nexus and tax registration is marked as tax exempt.

*The NetSuite tax engines or any partner tax engine

General Notices