Articles tagged #TAXES
Articles tagged
#TAXES
Removing Restrictions for Tax Control Accounts
Note: This feature is available for all nexuses, except US and Canada.
Creating a Tax Control Account
Note: Tax types and tax codes are created separately. Changing the tax control account on the tax type record does not automatically update the tax control account shown on the tax code record. Transactions post tax to the tax control account shown on the tax code record. Editing the tax code record updates the tax control account fields.
Tax Types Overview
A tax type determines where the tax paid or collected is tracked on the balance sheet. The balance sheet account to which NetSuite posts the collection or payment of tax is called the tax control account.
Tax Control Accounts Overview
Tax control accounts are accounts in your general ledger or chart of accounts. These are the accounts to which the amounts computed for indirect taxes such as sales tax and VAT are posted.
Setting Up Tax Agencies as Vendors
In most countries, businesses are required to collect tax from sales. Then, the collected tax must be paid to the tax authority on behalf of the customers. Default tax agencies are automatically set up by the system when you create a subsidiary or nexus, but you must edit the tax agency vendor record to provide details such as address information.
Nexuses and Taxes in OneWorld
A nexus is a tax jurisdiction. Nexuses are part of the NetSuite Advanced Taxes feature, required for NetSuite OneWorld. Each subsidiary must be associated with at least one nexus. The first nexus is automatically assigned to a subsidiary based on the country entered for the subsidiary's address. A subsidiary can have more than one nexus. A nexus and its related tax items can be shared by multiple subsidiaries.
Adding or Removing Nexuses from a Subsidiary
Add a nexus to a subsidiary if the subsidiary has a valid registration to collect tax in that nexus (tax jurisdiction).
Creating Tax Nexuses
You can set tax preferences for each nexus in which you collect and pay taxes.
Enabling Advanced Taxes
Warning: If you enable Advanced Taxes, you cannot disable it in the future.