Looking for some general best practices advise regarding international expansion into Canada within One World. TaxJar is our sales tax partner for US sales tax and would be handling the calculation for Canadian GST/HST/PST. They are saying this can only be done if we set up a Canadian subsidiary within NS. From a financial reporting standpoint we really consider our existing entity to be North America, not just the US, and don't have a strong desire to split the two. If I were to make Canada a child subsidiary to each existing "US" subsidiary would this address TaxJar's issue without forcing us to report on them separately?

I have never used Tax Jar - so it might be an issue local to their specific flavor of the world. However - I'd typically handle this by adding nexus in canada to the appropriate subsidiary.

Just get clear with TaxJar as to why they think you have to handle things this way. If you do not have a legal entity in Canada why bother with the subsidiary. If you really have 2 legal entities and want to process things as if you were one big happy North American family your issue is staring you right in the face

I did the initial testing in Sandbox by adding Canadian nexus to the existing subsidiary and followed the remaining TaxJar instructions but the reporting becomes wonky which is what prompted the questions back to TaxJar. I am not familiar with NS's native tax abilities, would that be an option for calculating GST / HST /PST in NS? We could then let TaxJar drive our website calculations (Magento 2.0) and hopefully align the tax mapping with the native NS fields. We do not have a Canadian bank account, but will have a Canadian fulfillment location so there would be some intercompany issues this would present as you both highlighted above. When the business scales we will likely reach a point where a Canadian entity would be established but we are not there yet 🙂. One thing we will likely need functionality for before that happens is multi currency. Would best practices dictate having one currency per subsidiary or is NetSuite generally friendly about allowing multiple currencies within a single subsidiary? Does that answer change if we are settling in a single currency vs CAD to CAD? Thank you both for your insight!

Could you use NS for Canadian tax? Sure. That said, NS sales/GST/HST/PST/VAT tax functionality is pretty basic, so I'm not sure if I'd fully trust it. If you're doing only 10 transactions a month or so or a volume to where you can keep an eye on the calcs at least for a month or two to make sure it's right, maybe it's fine. If you're doing 100 transactions a day though, I'm not sure I'd jump into that. To answer your currency question, assuming you have OneWorld, NS handles multicurrency per sub pretty well in general although it starts to not work as well if you start to do some things like trying to pay a CAD bill with a EUR bank account or something. But if you're just trying to put a CAD bill on a USD entity...and pay that bill in CAD or USD, it should work fine.