Netsuite - OneWorld Taxation and Nexus

Question

I'm struggling with how to apply the Netsuite Taxation module to our business scenario and wanted to see if anyone has dealt with a similar problem - dont want to take the route of writing custom scripts for this if possible because I want the accounting to maintain on a go-forward basis.

To explain the business scenario:

We sell in both the US and Canadian markets, we will have nexus in both regions, however:
We wish to use innate nexus tax code functionality in Netsuite to calculate GST/HST taxation in Netsuite for orders shipping to Canada. We have one major customer that needs to be assessed tax based on province that its being shipped to. I have already: - setup tax codes per province with the % GST or HST we want assessed - activated Canada as a nexus in the related subsidary - setup item tax schedule for the canadian-specific items that need the taxation assessed
For US orders that are direct to consumer (and therefore eligible for taxation) - we utilize Avalara tax engine on Shopify (ie outside of Netsuite) and all orders in Netsuite have a tax line that imports in orders and maps to sales tax account. Therefore for NS purposes we need all orders that go to a US address

I need to understand how to setup taxation logic as follows:

Shipping address, if: a) non-Canadian address -> automates to 'Non-taxable' b) Canadian address -> assess per province tax code on GST/HST as setup in the tax code section

We only sell true tangible property so ideally would only have one item tax schedule that fits the above criteria. Although I am curious if you setup a different taxation schedule if that overrides the tax codes per province.

Also in my combing of NS documentation on this - I'm not seeing anyway that you can setup specific customers as tax exempt or a specific tax type. Is this possible?

Thanks

Not to give a dodgy answer, but this sounds like something you should call NetSuite for. I certainly hope someone here can give answers, but I would just call NetSuite anyways to verify everything. — zerecees
not at all dodgy - actually reached out to Netsuite simultaneously. Wondering if anyone in the community has dealt with something similar too and can give any advice — Lrabe

sidiabale sidiabale · Accepted Answer · 2020-09-10T00:02:15

You're on the right track. You should be able to achieve what you want without scripting. You need to associate your tax schedules with your items. You'll probably have the same "Taxable" schedule for all items. Since you want this to only apply to Canada, on the tax schedule itself (Setup >> Accounting >> Tax Schedules), specify a tax exempt or zero tax code for all other Nexuses where you do not want to charge tax. Now when you add an item to a transaction, NetSuite will use the tax associated tax schedule to determine the taxes based on shipping address. Let me know if this works for you.

Netsuite - OneWorld Taxation and Nexus

1 Answers