Accounting Talk Accounting Talk    FAQ   Search   Memberlist   Usergroups   Register   Profile   Log in to check your private messages   Log in  GST (5%) and PST (7.5%)          Accounting Talk Forum Index -> Peachtree View previous topic :: View next topic   Author Message alexxxita Guest Posted: Thu Feb 28, 2008 12:48 am    Post subject: GST (5%) and PST (7.5%) Hi everyone, I just wanted to clarify something, I can understand that we need to set up the taxes authorities first, then create taxes codes. But if we combine 2 taxes, we get: Quote: 100$ invoice + 12.5% (combined GST 5% & PST 7.5%) = 112.50$ But what we need is to add the 5% GST to the total and in a second step, add the 7.5% PST to that amount : Quote: 100$ invoice + GST (5%) = 105.00$ + PST (7.5%) = 112.86$ Any solution? Meanwhile I will keep searching... Thank you Alexandra Back to top   Ads Advertising Sponsor alexandra Guest Posted: Thu Feb 28, 2008 1:03 am    Post subject: Re: GST (5%) and PST (7.5%) Quote: I read this but still think the same problem applie: I think that a reading of the Peachtree manual would help here. What you need to do is to set up the "Tax Authorities" and the " Tax Codes" just as the manual describes, with Tax codes for GST+PST, and finally, Exempt, applying the tax authorities accordingly. Apply the tax codes to the customer records, and change them as might be occasionally required on the invoice. With the appropriate GL codes configured, then you don't have any further problems. You would pay your sales taxes according to your month/period end trial balance amounts. The only deficiency is that your invoiced taxes aren't disclosed separately, but lumped together as a total. If you have customers that require sales taxes to be shown separately, then set the sales taxes up in inventory as non-stocking items, with the price being the tax rate, and the quantity on an invoice as the accumulated amount of the invoice before the taxes are applied. Most Canadian Peachtree users with whom I'm in touch use the native Peachtree "Tax Authorities" and the " Tax Codes", and I've never heard of any complaints from them about sales tax auditors complaining. > how can this be if the total from adding two taxes at once is not the same as charging the second taxes on the total amount of the invoice that included the first taxe? Back to top   Ads Advertising Sponsor alexandra Guest Posted: Thu Feb 28, 2008 7:54 pm    Post subject: Re: GST (5%) and PST (7.5%) The software is : Peachtree First Accounting 2008. It is the basic version. Back to top   Ads Advertising Sponsor Ted Guest Posted: Fri Feb 29, 2008 10:40 pm    Post subject: Re: GST (5%) and PST (7.5%) Is your PST applicable on GST? Other provinces don't charge tax on tax, it's un-Canadian .......... the combined tax would be @ 12.5% On Wed, 27 Feb 2008 16:48:04 -0800 (PST), alexxxita <info@2square.ca> wrote: ->Hi everyone, I just wanted to clarify something, -> ->I can understand that we need to set up the taxes authorities first, ->then create taxes codes. -> ->But if we combine 2 taxes, we get: ->> 100$ invoice + 12.5% (combined GST 5% & PST 7.5%) = 112.50$ -> ->But what we need is to add the 5% GST to the total and in a second ->step, add the 7.5% PST to that amount : ->> 100$ invoice + GST (5%) = 105.00$ + PST (7.5%) = 112.86$ -> ->Any solution? -> ->Meanwhile I will keep searching... -> ->Thank you -> ->Alexandra When replying, please remove {_Spam_Me_Not_} from the email address. Back to top   Ads Advertising Sponsor Ted Guest Posted: Sat Mar 01, 2008 12:45 am    Post subject: Re: GST (5%) and PST (7.5%) Is your PST applicable on GST? Other provinces don't charge tax on tax, it's un-Canadian .......... elsewhere the combined tax would be @ 12.5% On Wed, 27 Feb 2008 16:48:04 -0800 (PST), alexxxita <info@2square.ca> wrote: ->Hi everyone, I just wanted to clarify something, -> ->I can understand that we need to set up the taxes authorities first, ->then create taxes codes. -> ->But if we combine 2 taxes, we get: ->> 100$ invoice + 12.5% (combined GST 5% & PST 7.5%) = 112.50$ -> ->But what we need is to add the 5% GST to the total and in a second ->step, add the 7.5% PST to that amount : ->> 100$ invoice + GST (5%) = 105.00$ + PST (7.5%) = 112.86$ -> ->Any solution? -> ->Meanwhile I will keep searching... -> ->Thank you -> ->Alexandra When replying, please remove {_Spam_Me_Not_} from the email address. Back to top   Ads Advertising Sponsor alexandra Guest Posted: Sat Mar 01, 2008 9:38 am    Post subject: Re: GST (5%) and PST (7.5%) 1. You must calculates GST (5%) 2. add it to the selling price, 3. then applies the QST (7.5%) to the GST and selling price. Back to top   Ads Advertising Sponsor Ted Guest Posted: Thu Mar 06, 2008 11:09 pm    Post subject: Re: GST (5%) and PST (7.5%) On Sat, 1 Mar 2008 01:38:03 -0800 (PST), alexandra <info@2square.ca> wrote: ->1. You must calculates GST (5%) ->2. add it to the selling price, ->3. then applies the QST (7.5%) to the GST and selling price. Effectively, your PST rate is then 0.07875 on the base price plus GST When replying, please remove {_Spam_Me_Not_} from the email address. Back to top   Ads Advertising Sponsor Trevor Davis Guest Posted: Sat Apr 05, 2008 4:14 am    Post subject: Re: GST (5%) and PST (7.5%) Quote: But what we need is to add the 5% GST to the total and in a second step, add the 7.5% PST to that amount : Alexandra, The effective PST rate is then 7.875% (based on 7.5% of 100 + 5). If you enter that as the rate instead of 7.5% the PST will be calculated correctly (for Quebec tax on tax). However if PeachTree prints the rate of 7.875% on the invoice it will confuse the customer. In BS1 Accounting (a free program, www.dbsonline.com/accounting) if the Tax Name contains the word Quebec (example: PST - Quebec), then the tax rate doesn't print on the AR invoice. This allows for the effective rate to be entered, but not printed. If you want to print PST @ 7.5% you can enter that as the Tax Description. -- Sincerely, Trevor Davis Davis Business Systems Ltd. www.dbsonline.com Back to top   Ads Advertising Sponsor Display posts from previous: All Posts1 Day7 Days2 Weeks1 Month3 Months6 Months1 Year Oldest FirstNewest First         Accounting Talk Forum Index -> Peachtree All times are GMT Page 1 of 1   Jump to: Select a forum Accounting Talk----------------Accounting TalkPeachtreeQuickbooksQuicken  You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum Australian Debt Consolidation Experts medical insurance Wedding Websites Escort e accompagnatrice in Rimini, Reggio Emilia, in Riviera Adriatica, in Modena... 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