Canada has two types of taxes: a national Goods and Services Tax (GST) and a Provincial Sales Tax (PST). Because provincial taxes sometimes include a tax on the base national tax (a tax on a tax) in addition to taxes calculated for goods and services, set up base and primary tax authorities that allow for this extra calculation.
Tax Authority |
Calculation Performance |
BASE_GST |
Specifies the GL account for national tax and tax rate. |
Primary GST
|
(Required) Primary GST entry, which relates back to the BASE_GST (no GL account or tax rate should be entered). |
Primary PST
|
Specifies the GL account. This is related to BASE_GST and may indicate that PST tax is also applied to the GST tax amount. (Note: Use the province abbreviation.) |
Note: Never use the BASE_GST as the primary taxation authority; rather, use BASE_GST as the related taxation authority to calculate the primary PST and GST. Because it is the basis for tax calculation and tracking, the BASE_GST must contain the correct rate and GL account number.
10.6 Production Release. Updated 7/25/2005 9:35:07 AM
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