SA Local Tax Setup overview

System Administrator > Setup > Local Tax

Function acronym: SASGL

Use this page in conjunction with Provincial Sales Tax (PST) and Goods and Services Tax (GST) rates. When you set up a provincial tax code in SA Goods and Services Tax Setup, two SA Local Tax Setup records are created by the system: domestic (dom) and government (gov).

Caution:

A blank SA Local Tax Setup record is also created automatically when you select GST as your company's Tax Method in SA Company Setup. This blank record is used to store the GL account for tracking tax amounts when you run Sales Goods and Services Tax Report. This blank record can be viewed in SA Local Tax Setup if you search for all records. Do not delete this blank record. This will prevent the Sales Goods and Services Tax Report from performing calculations. The error Invalid Setup - Please Contact is displayed. If the blank record is deleted in error, access SA Company Setup, change the Tax Method to SUT and save the record. Access the record again and change the Tax Method to GST and save again. The blank record should be recreated.

If the domestic or government tax authority does not exist and a change is made to SA Goods and Services Tax Setup, records are created in SA Local Tax Setup. In this case, the five government rates default to zero. For the domestic record that is created, if the province is not harmonized, then rates 1, 2, and 5 default to the GST rate from SA Company Setup. If the province is harmonized, all five of the rates default to zero.

The General Ledger accounts for these records default from the tax fields in SA Company Setup. Therefore, each province record has the same Goods and Services Tax (GST) General Ledger records specified. To have separate accounts for GST collected in each province, you must maintain the account for each province in the SA Local Tax Setup records, and for each tax authority: domestic and government.

A provincial sales tax (PST) is a tax paid by Canadian companies for goods purchased for the explicit use of the company and not for resale.

Note: If you have selected Value Added Tax (VAT) as your Tax Method in SA Company Setup, be aware that VAT does not pertain to localities, does not have PST, and does not require use of SA Local Tax Setup.