Is it valid for a Canadian subsidiary, registered in the U.S., to use a Texas tax code in NetSuite? From my understanding, Canadian entities typically use tax groups like GST and PST based on their nexus in Canada. Even if a Texas nexus is added to the Canadian subsidiary, shouldn’t the Canadian tax group remain applicable for transactions within Canada, instead of applying a Texas tax code? Could this be a configuration issue in NetSuite?

AI generated answer (using internal Slack threads):

Based on the conversations, it appears that tax codes in NetSuite are nexus-specific. This means that each tax jurisdiction has its own filing and reporting, and you can't just have a general tax code that applies to all subsidiaries. In the context of a Canadian subsidiary registered in the U.S., it would typically use tax groups like GST and PST based on its nexus in Canada. Even if a Texas nexus is added to the Canadian subsidiary, the Canadian tax group should still be applicable for transactions within Canada. If a Texas tax code is being applied to transactions within Canada, it could indeed be a configuration issue in NetSuite. It's important to ensure that the correct nexuses are set up for each subsidiary, and that the appropriate tax codes are being used for each nexus. However, it's also worth noting that the tax setup can be complex and may vary depending on specific business requirements and tax regulations. For example, if the Canadian subsidiary has a physical presence or does business in Texas, it might be required to collect Texas sales tax on transactions within Texas. In conclusion, while it's technically possible to use a Texas tax code for a Canadian subsidiary in NetSuite, whether it's valid or not would depend on the specific tax regulations and business circumstances. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******