SuiteTax: What Is It and Why Should Your Company Use It?

Tax rules and regulations vary widely across different countries, and complying with them can cause many headaches for multinational corporations. Even within the United States, taxes can differ dramatically across state, county, city, and even district lines. 

How on earth do you keep up with all of this? 

NetSuite has the perfect solution for you: SuiteTax.

What is SuiteTax?

NetSuite recently developed SuiteTax, an indirect tax solution that determines and calculates taxes across multiple tax jurisdictions. Built within the NetSuite platform, SuiteTax seamlessly integrates tax calculation and reporting within your applications. So, if you’re using NetSuite’s sales, billing, revenue recognition, and payment processing features, you no longer have to worry about whether you’re calculating taxes correctly around the US and the world. 

There are three main bundles you can take advantage of, all of which use the SuiteTax API. They are SuiteTax for USA and VAT Countries (which includes over 140+ countries), SuiteTax for India, and SuiteTax for Brazil. We’ll focus primarily on the USA and VAT countries.

What Are the Benefits of SuiteTax?

There are myriad benefits that come with using SuiteTax, both in general and region-specific. 

General Benefits

Overall, SuiteTax helps your company:

• Handle sales tax, VAT, GST, and withholding tax calculations
• Maintain monthly tax rates for over 110 countries
• Automate monthly tax rate updates for 110 countries while also compiling the history
• Auto-provision tax codes with rates
• Maintain rate change history by effective dates
• Manage multiple tax jurisdictions for each subsidiary
• Enhance tax determination logic based on location, origin, and destination

United States Benefits

Within the United States, SuiteTax will:

• Provision tax types, tax codes, tax groups, and tax agencies for over 11,000 tax jurisdictions
  • This includes state tax, county tax, city tax, district tax, and tax not liable
• Determine sales tax based on full 9-digit ZIP code (ZIP + 4 sales tax determination)
• Calculate origin and destination-based tax (both intrastate and interstate)
• Provide exemption certificate support
• Customize taxability rules defined at the state level, including tax holidays
• Determine tax jurisdiction by address for purchases

VAT Country Benefits

Within VAT Countries, SuiteTax:

• Auto-provisions tax codes, VAT rates, Tax Agencies
• Handles in-country transactions (VAT, GST, and sales tax) and cross-border transactions (intra-EU, 3PL, reverse charges, and others)
• Conducts EU VAT lookup based on a tax registration number (legal name verification)
• Validates Non-EU VAT ID format 
• Provides customizable country-specific compliance text on invoices
• Tracks deductible and non-deductible VAT
• Generates localized VAT reports at summary and transaction detail levels
• Features editable templates to change reporting boxes on tax returns easily

Next Steps

Do you want this functionality in your NetSuite ERP? There are a couple of things you’ll need to do before getting started with the setup of SuiteTax, such as:

• Brushing up on your tax knowledge, so you can identify exactly what you need SuiteTax to accomplish for you
• Filling out a questionnaire provided by NetSuite to ensure proper use of the SuiteTax application

We will walk you through this process and make your SuiteTax implementation successful!

 

This post was originally published by CTR. CTR was acquired by AST in January 2023.