The correct setup of tax reporting depends on countries you operate in and your requirements.
Many customers find it beneficial to install International tax reports suite app in their NetSuite accounts, which populates your account with the needed Tax codes:
Supports VAT and GST reporting and online filing for more than 42 countries across Europe, Asia, and Latin America, all generated in the local format for ease and accuracy of submission.
After you installed the suiteapp, and create a new subsidiary, th app will create all the needed tax codes for the nexus associated with the country of subsidiary.
For example, for German subsidiary a collection of tax codes will appear on your account
There are a lot of 0% tax rates. The most important part in those code is not the %, but the name. The name is used to employ a special logic in NetSuite when creating Tax reports to include amount of purchases in non-EU countries, for example.
Sections 305 - 320 are filled based on those special 0% codes.
Next step is to create Tax groups that would be imported to Rydoo as Tax rates.
- Create New Tax Group
- Select Country
- Set name according to the name of tax code (copy/paste), set description, select subsidiary (VERY IMPORTANT: do NOT select all subsidiaries if you want your account in order), select tax code
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 this syncs to Rydoo
For example, you had these Tax Groups in your NetSuite account
After Sync of Tax groups in your Rydoo account on the page Tax rates you will be able to see
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 be have reasonable amount of options, as we filter tax rates based on 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 Expense report in Netsuite.
- Amount of the expense displayed in Netsuite expense report will be the net amount (calculation = gross amount - VAT amount).