ANS-0892 · SUITETAX & TAX MANAGEMENT
How to Disable Taxes for a Specific US State in NetSuite OneWorld
Manage state tax nexus settings on subsidiary records in NetSuite OneWorld environments.
Short answer
In NetSuite OneWorld, disable taxes for a specific US state by unchecking it on each Subsidiary record's 'Nexuses' subtab. Be aware that this is restricted if transactions are linked to the nexus, requiring prior modification or deletion. The method may also differ based on your NetSuite tax feature (Legacy Tax vs. SuiteTax).
Scenario
Organizations operating in a NetSuite OneWorld environment may need to temporarily or permanently disable tax calculations for a specific US state. This often occurs due to changes in business operations or legal requirements. The process requires careful adjustment of nexus configurations within NetSuite.
Solution
In a NetSuite OneWorld environment, to disable taxes for a specific state, the recommended approach involves adjusting the nexus settings on each Subsidiary record.
Navigate to each relevant Subsidiary record.
Access the 'Nexuses' subtab.
Uncheck the specific US state for which taxes need to be disabled.It is crucial to understand that simply unchecking a state (nexus) is not possible if transactions are already associated with that nexus. In such cases, any associated transactions must first be deleted or modified before the nexus can be unchecked. Additionally, the optimal method for disabling taxes may vary depending on whether the NetSuite account utilizes NetSuite's Legacy Tax or the newer SuiteTax feature.
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