This article will detail the correct setup for the NetSuite Legacy Tax engine.
In case you are using the SuiteTax engine please view this article.
The correct setup of tax reporting depends on the countries you operate in and your requirements.
Many customers find it beneficial to install the International tax reports suite app in their NetSuite accounts, which populates your account with the needed Tax codes.
SuiteApp Supports the following:
VAT and GST reporting
Online filing for more than 42 countries across Europe, Asia, and Latin America
All are generated in the local format for ease and accuracy of the submission
Install the SuiteApp bundle
2. Create a new subsidiary
3. The app will create all the needed tax codes for the nexus associated with the country of the subsidiary
For a German subsidiary, a collection of tax codes will appear on your account.
There are a lot of 0% tax rates
The most important part of those codes is not the %, but the name.
The name is used to employ a special logic in NetSuite when creating Tax reports to include the amount of purchases in non-EU countries, for example.
Sections 305 - 320 are filled based on those special 0% codes.
4. The next step is to create Tax groups that would be imported to Rydoo as Tax rates.
How to create Tax groups?
In NetSuite: Create a New Tax Group
3. Set name according to the name of tax code (copy/paste)
4. Set description
5. Select subsidiary (VERY IMPORTANT: do NOT select all subsidiaries if you want your account in order)
6. Select tax code
7. Repeat this process for each of the tax codes
***Check yourself: the Tax Groups quantity should equal to Tax Codes quantity for each country.
How to sync Tax Rates to Rydoo?
Open Rydoo with administrator role
Navigate to the Admin Settings
Navigate to the Integration Page
Enable the "Enable tax syncing" checkbox
Click on the "Sync your tax rates" button
You have the following Tax Groups in your NetSuite account :
After Sync of Tax groups to your Rydoo account on the Tax rates page (Admin Settings > Tax Rates), you will be able to see the following:
Notice, that 0% rates are marked "All countries". This is to allow users of Rydoo to select those tax rates when they are expensing outside of their home country.
The list of tax rates to select would have a reasonable amount of options, as we filter tax rates based on the branch of the user.
Below showing a few examples:
Export Tax rates to Netsuite:
Tax-related fields should be imported from Netsuite to Rydoo to be able to successfully sync them to Netsuite.
Reimbursable expenses that are created with tax rates will be exported to the Expense report in Netsuite.
The amount of the expense displayed in Netsuite expense report will be the net amount (calculation = gross amount - VAT amount).
***Note: Netsuite does not offer the feature to sync tax rates for UK and USA subsidiaries (branches in Rydoo). Consequently, Rydoo is not able to sync tax rates to Netsuite as it's a limitation in Netsuite.