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Defining Canadian Tax Codes

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.

In This Section

Set up tax codes window

To define the BASE_GST tax code

To define the Primary GST tax code

To define a provincial tax code

See Also

Canadian Taxation

Overview

Enabling Canadian Taxation

Defining the Default Tax Authority

Defining the GSTINC Tax Authority

Enabling Canadian Taxation for Countries

Assigning Canadian Tax Codes to Events

Applying Canadian Taxation to Orders

Modifying Reports for Canadian Taxes


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