[freeside] Canadian taxes...

[Rob Charles]

All you suggestions imply that I only have 1 tax and I adjust the
percentages to calculate a combined tax. In Canada while showing a combined
tax is legal, it causes customer confusing and reporting issues on audit.
The best way to support Canadian taxes on an invoice is to show them
separately:

In Canada the GST is a federal tax and is applicable on everything at a
retail level, except food - supermarket and a few other exceptions - but
pretty well everything.

The PST is provincial sales tax and in Quebec is calculated on everything
like GST, but is calculated on the subtotal of the cost of goods + the GST
tax.

The atlantic provinces have adpoted a combined tax called HST and so there
is only 1 tax for the provinces of Nova Scotia, New Brunswick, PEI, and
NFLD.

In Ontario, goods in general carry PST, but services don't. So ISP montly
service is no PST but purchasing a modem is, the PST is calculated on the
subtotal of cost of goods, not on the subtotal + GST.

I don't know much of the taxes out west, but they don't introduce any new
concepts.

I was wondering if there is a way to setup freeside with 2 taxes per
province:
- on tax classes have a PST exempt

Also show taxes seperately on the invoice and in tax reports.

If the solution is to create many taxs per province that are combined and to
split them out on the invoice and tax reports, that is fine. I just wanted
to know how deep the support for multiple taxes would run in freeside.

Thanks...

:)

Rob Charles
TheHostMasters
Montreal, Canada
514-846-0006
Rob at TheHostMasters.com
http://www.TheHostMasters.com



----- Original Message -----
From: <fox at vader.aacc.edu>
To: "Rob Charles" <rob at thehostmasters.com>
Cc: <ivan-freeside at sisd.com>
Sent: Monday, August 18, 2003 6:08 PM
Subject: Re: [freeside] Canadian taxes...


> On Mon, 18 Aug 2003, Rob Charles wrote:
>
> > I setup the Country as CA and the State as QC, then I setup tax 1 as PST
> > and tax 2 as GST and assigned them the % 7 - GST and %7.5 PST. This is
> > perfect.
> >
> > On the customer it makes me assign for state QC either GST or PST but
> > the client must be charged both.
>
> Case 1: the 3 combos (GST + PST, GST only, PST only) are possible.
>
> Define a 3rd tax, which would be GST+PST combined. Tax rate would be 1.07
> * 1.075 - 1 = 0.15025 = 15.025%.
>
> Case 2: one of the taxes never applies alone (eg, you can get GST only, or
> both, but not PST only).
>
> You could change the PST rate so that it would give the right result when
> applied to the price exclusive of GST (subtotal in your example below).
> Instead of 7.5%, you would need to use 1.07 * 0.075 = 0.08025 = 8.025%.
>
> > The other issue is for the province of QC we must charge the taxes as
> > per the example in the ticket, how do we specify that PST must be
> >
> >  Sub-Total * 7% = GST
> >  (Subtotal + GST) * 7.5% = PST
> >  Sub-Total + GST + PST = Total
>
> You may need to be careful with both suggestions above in case you have
> invoice layout constraints, or if you need to pay the GST and PST you
> collect to different tax authorities.
>
> --
> Remember: i before e, except on Unix machines.
>