Setting up a Goods and Services Tax master record

To create or edit a tax master record for Canadian taxes, use SA Goods and Services Tax Setup.

Use these example instructions to create a Goods and Services Tax master record for a jurisdiction type-group. Your exact steps can vary.

  1. Select System Administrator > Setup > Goods and Services Tax.
  2. Click New.
  3. In Province, specify a province, and click Save.
  4. Specify this information:
    Description

    Specify a concise description to identify the province and type of tax collected. For example, Ontario PST.

    Tax ID #

    Specify your company’s Provincial Sales Tax (PST) registration number. This number is issued by the provincial government for which you are collecting taxes.

    P.S.T. on G.S.T.

    Some provinces charge provincial tax on purchases after the federal goods and services tax (GST) has already been added. Select this option if you are required to calculate the PST Tax Rate on GST Tax liabilities.

    Harmonized Sales Tax

    Optionally, to use the Harmonized Sales Tax (HST) functionality, select this option and clear the P.S.T. on G.S.T. option. The HST combines the federal goods and services tax (GST) and the regional provincial sales tax (PST) into one tax. You must select this option for the participating provinces. Currently, those include New Brunswick (NB), Newfoundland (NF), Nova Scotia (NS), Ontario (ON), and Prince Edward Island (PE).

    For these provinces, set the PST Rate field to 0%. If you maintain this field, change this record, then change the SA Local Taxes Setup record. When using this functionality, you must also a) set all PST Rates to zero in SA Goods and Services Taxes Setup, and b) set all values in the GST column in SA Local Taxes Setup to a current and appropriate percent for each company that is effected by this tax. The GST tax settings on the SA Company Setup record will not be used.

    Only one tax amount is displayed on an invoice for an HST province. That HST tax amount is stored and displayed at the GST level. This list shows examples of how the HST amounts are displayed:

    • In Sales Order Entry-Taxes & Totals, the HST amount is displayed in the GST field in the Totals section; 0.00 is displayed in the PST field.
    • In Sales Order Inquiry-Taxes, the HST amount is displayed in the G.S.T Amount field; 0.00 is displayed in the P.S.T. Tax Amount field.
    • In Sales Order Master List Report-Totals, the HST amount is displayed in the G.S.T. field; 0.00 is displayed in the P.S.T. field.
    • In Sales Order Master List Report-Other Header Information, the HST amount is displayed in the Tax Amt Oth: field; 0.00 is displayed in the Tax Amt State: field.
    • When the invoice is printed, the HST amount is displayed in the G.S.T./H.S.T. field with the invoice totals. The P.S.T. field is not displayed in the report.
  5. In PST Rates, the tax groups (1-5) you created in SA Company Setup-Taxes are displayed in this section. Specify a rate for each tax group that is applicable to this jurisdiction. The tax group and corresponding rate determine which provincial taxes to calculate. Tax groups are used when setting up inventory records to identify which tax group a particular product falls into. The Standard tax group is used a majority of the time. The PST Rate is used in Sales Order Entry.
  6. In Tax Accounts, specify the General Ledger account that will be used to track Provincial Sales Tax (PST) you collected from sales made to your customers. This account records your PST liability. The account must exist in GL Account Setup. The fields displayed depend on the Tax Analysis setting in SA Company Setup-Taxes: Accrual or Cash.
    Note: Vertex Cloud does not support cash basis. If you intend to integrate with AvaTax, for cash basis, you must first contact your AvaTax representative.
  7. Click Save.