Canadian taxes

Federal and provincial governments have the authority to levy income, sales, and excise taxes. However, a provincial government may levy sales taxes only at the retail level. Import duties, also known as tariffs, are a federal responsibility.

To activate the Canadian taxation features in Distribution SX.e:

• Create the General Ledger posting accounts in GL Account Setup to track Canadian:
  • Input Tax Credits (ITC): Tracks all GST paid by your company when it purchases products.
  • Goods & Services Tax (GST): The tax collected.
  • Provincial Sales Tax (PST): Create an account for PST paid and an account for each province in which you are licensed to collect PST from customers.

• In SA Company Setup, set the Tax Method field in to Goods and Services Tax (GST).
• In SA Company Setup, set the Country field to Canada.
• Configure your GST rate and assign your ITC, GST, and PST General Ledger account codes in SA Company Setup-Taxes.

When you set up a new provincial tax code in SA Goods and Services Taxes Setup, two SA Local Taxes Setup records are created to store the GST rate information and the GST General Ledger accounts. The first record created is dom (domestic) and the second is gov (government). The accounts initially default from the SA Company Setup record. Therefore, each province record you set up contains the same GST-collected account. To have separate General Ledger accounts for GST collected in each province, you can change the account for each province in the SA Local Taxes Setup dom and gov records.

Tax exempt customers and shipto locations must have valid SA Goods and Services Taxes Setup and SA Local Taxes Setup records set up correctly to avoid taxes from being calculated on orders. The P.S.T. on G.S.T.option in SA Goods and Services Taxes Setup must be cleared and all amount fields should contain a zero value. The SA Local Taxes Setup tax authority must be gov, and a P.S.T. license number must be specified on the customer or shipto tax record.