SA Goods and Services Tax Setup - General field descriptions

Fields are presented in alphabetical order within each section.

Tax Description

Description

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

Harmonized Sales Tax

Harmonized Sales Tax (HST) is the single harmonized value-added tax that replaces the Goods and Services Tax (GST) and the Provincial Sales Tax (PST) in participating Canadian provinces. The HST applies a tax rate that is a combination of the PST and GST. The HST applies to all GST registrants across Canada who make taxable sales to customers in the participating provinces or who make purchases form these provinces. The HST has the same basic operating rules as the existing GST and applies a single rate of 15 percent to the same base of goods and services. Seven percentage points of the 15 percent rate represent the federal component; eight percentage points represent the provincial component.

Select this option and clear the P.S.T. on GST option to use the Harmonized Sales Tax functionality. You must select this option for the provinces of New Brunswick (NB), Nova Scotia (NS), and Newfoundland (NF). For these provinces, set the PST Rate field to 0%. If you must maintain this field, ensure that you change this record, then change the SA Local Tax Setup record. If you use this functionality, you must set all PST Rates to zero in SA Goods and Services Tax Setup, and set all values in the GST column in SA Local Tax Setup to 15 percent for each company that is effected by this tax. The GST tax settings on the SA Company Setup record are not used.

P.S.T. on GST

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.

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.

PST Rates

Tax Group/PST Rate

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.

Tax Accounts

GL Acct #

Specify the General Ledger account that will be used to track Provincial Sales Tax (PST) you collect from sales made to your customers. This account records your PST liability. The account must exist in GL Account Setup.