Nexuses and Subsidiaries

If you use NetSuite OneWorld, then each subsidiary record is associated with the nexuses in which it must pay taxes. After saving a subsidiary record for the first time, you can set tax nexuses on the Nexuses subtab. Transactions posted to the subsidiary pay tax as configured in that nexus.

You can independently associate each subsidiary with the same tax nexuses of other subsidiaries in the company's organization.

For example, assume that a company has two subsidiaries, one in the U.S. and one in the U.K. The U.K. subsidiary does not have a nexus in the U.S., but the U.S. subsidiary does. If a sales person in the U.K. subsidiary makes a sale to a customer in the U.S., value-added tax (VAT) is charged according to the rules defined for international sales. In this example, this would normally be the zero rate for export sales.

For more information, read the following topics:

For more information about OneWorld, refer to the list of related topics.

Related Topics

Enabling Advanced Taxes
Set up NetSuite OneWorld
OneWorld ERP Accounting
Tax Accounting Overview
Enabling and Setting Up Taxation Features
General International Tax Topics
Managing Tax Codes

General Notices