I am a bit confused on Taxes in NetSuite. We have a customer that's primary Subsidiary is US, then has a secondary subsidiary as the UK. We have avalara for our us and netsuite does tax for international. This customer gets a sales order for the UK subsidiary, but their shipping address is Sweden. We do not have a nexus in Sweden. No tax code is being applied on the Sales Orders. If someone in accounting goes and edits a line item it forces them to pick a tax item. They pick one that has 0 tax. We are wanting to make 0 tax the default for these types of orders. But when trying to assign a tax item, you have to pick a subsidiary that is related to it. So when I apply a tax item that is 0% for the UK, it gives me an error saying that it has to be a US tax item.

Just noticed this...FYI there is a Taxes channel and I pay more attention there.

I should have posted in there first, but it didn't have much activity. The ship to address is Sweden on the SO, the subsidiary on the SO/invoice is UK, but the Customer's primary subsidiary is the US. We use Avalara for our US Subsidiaries only. We do not have a Sweden Nexus setup, the only Nexuses we have setup for international is UK, AUS, and Austria. The tax item on this customer since it's primary subsidiary is in the US is Avatax. The tax schedule on the items are Taxable-US. Within Taxable-Us we have 3 international Nexuses and only UK has a tax code on that list.

Using Legacy Tax or SuiteTax? If Legacy you should have the internation tax reports bundle which will provide the codes you need.

Legacy.

SO UKco has a sales order document with a shipping address in Sweden. The UK entity has a UK nexus only or multiple? The customer also has a default tax item setup? On the Financials tab of the customer there is a US based tax item?

Thank you for your help btw. Attached is our Setup Up Taxes page for UK. Second image is the Nexuses on your UK Subsidiary, only have one, United Kingdom (GB).

so what happens here (Likely) is that the features for UK included intra EU functionality. Sweden is EU and this may be interferring. I know that UK is no longer EU but that doesnt mean the app was updated. You mentioned the system tries to tell you to select a US code? Could you get a screen grab of that?

So it doesn't assign one, and when user goes in and edits the line it is required to add a tax code. I was thinking that there should be a way to automatically assign a tax code without a script/workflow. But the item will most likely have Tax Schedule as seen below. Nexus -> Tax Schedules -> Customer Taxability. This the hierarchy right?

What is the item type? Is it Service?

We use Non-inventory Item for Sale. If we edit the SO and select the tax drop down menu on the line item we get 3 tax codes, all for the UK S-GB is one of them. Then to double confirm (since it shows in the list), S-GB is active. And I can confirm that S-GB is being mapped automatically on SO imports via celigo for UK shipping addresses.

Ah that makes it more interesting...always more to discover. So basically you have imported data via celigo that when edited loses its tax code and must be reselected. Is that the scenario?

Celigo pushes it over, if the shipping address is in the uk and the sales order is the uk subsidiary a tax does get set. If it is outside the uk address, no tax gets set. Celigo is not mapping any tax at all.

My hunch is this is a setting related to Celigo. If it works fine in the UI but not via web services most of the time thats your sign. @rico who would be the right type of contact to verify this kind of behavior? I would expect the Celigo API to mimic the UI activity where default tax codes are set.

Thanks for tagging. Will flag this with the team to get you some help. @Tyler Lamparter for visibility too

Tax Codes should set by default provided there is ANYTHING in the default tax code field for the nexus either for the subsidiary or the destination. Only time that isnt the case is US purchases for legacy tax

So since this order is in our UK subsidiary, which has a nexus with a tax code, it should be defaulting? Because on the SB order the Tax Code is blank, and we have to use the drop down menu to select. But to go back up higher in this thread, and again thank you for responding and informing, it is a Sweden ship to address, with the item having a Tax schedule that does not have a Nexus for Sweden, nor does our account have a Nexus for Sweden.

I swear we came up with these orders come over from Celigo. When attempts to edit said orders you lose the tax code and it needs set all over again. What is the actual business scenario?

Orders come over from Celigo and the tax codes are blank. The Accountant needs to edit the SO. When editing the SO and trying to save it states a tax code needs to be entered. They enter a tax code.

Oh my then its more likely Celigo. Most tax situations simply default

And sorry to keep this going, but do you think it is Celigo, even if through creating a SO through the UI in the same customer and subsidiary is also not auto populating tax codes. So both Celigo created orders and UI created orders are acting the same.

Yeah this horse is dying fast. If it is ALSO in the UI then its NetSuite and Celigo is along for the ride. Contact customer support. To me all signs say the tax code is inactive or not available to the sub by some accident

@Noel B - do you mind shooting me an email to rico@celigo.com?

Yeah, that was my conclusion last week when I did the UI test. I probably didn't describe it the best. Thanks again, I will reach out to support.