LegacyTax vs. SuiteTax

How do you handle U.S. sales tax in NetSuite?  There are essentially three options: 1) LegacyTax, 2) SuiteTax and 3) third-party integration.  Here is my over-simplified guide on when to use each:

Third-party integration

• Do you want a platform that will complete sales tax reporting?
• Should you be utilizing “geolocation” for determining sales tax nexus?
• Do your products and/or services have difficult-to-maintain, unique sales tax rules per nexus?  Or product/service taxability that depends on use?

SuiteTax

• Do you have nexus and ship to any states with destination-based taxation?  That is all* states except the following:
  • Origin-based states: AZ, IL, MS, MO, NM, OH, PA, TN, TX, UT, VA

LegacyTax

• Are your sales primarily tax exempt?
• Do you have nexus strictly in an origin-based state (see above list)?
• Can you record a single sales tax code per customer (to be defaulted on all customer transactions)?

*CA is a mixed sourcing state – not strictly origin- or destination-based.  If you have nexus and sales in CA, that would push you toward SuiteTax over LegacyTax.