Search options (Page 2 of 2)

Hi,

Canada has a somehow complex sales tax system, the types of taxes and the rates within the same tax types differ, as shown here: http://somanews.wordpress.com/2010/07/28/provincial-and-federal-sales-tax-rates-per-canadian-province/

Let´s concentrate on HST (Ironically called "Harmonised Sales Tax", although it´s far from  being harmonized). HST rates differ from province to province, however, all HST is paid to the federal government (not the provincial government. Therefore, we will need to set up different taxes like for example:

HST British Columbia: 12%
HST Ontario: 13 %
HST Nova Scotia: 15 %
etc.

Since all of them are paid to federal government, it would make sense to post them all to the same GL account. However, when trying to do so, I get this ("error") message:

**********
To avoid problems with manual journal entry all tax types should have unique Sales/Purchasing GL accounts.
**********

Altough it reads "... SHOULD have...", there´s no way to post to tax types to the same account.

Then I tried to create sub-accounts using the "account code 2" like this

HST British Columbia: 2151-00
HST Ontario:             2151-01

I was hoping this would create sub-accounts, but instead, I get the error message that account exists already, so it does not take into consideration account type 2 (the part after the dash).

As if this would not be complicated enough, for the province of Quebec, there are two sales taxes to be charged (GST and PST), while GST goes to federal government (same account as HST), and PST goes to provincial government. PST is charged on net prices plus GST, thus it´s "tax on tax".

Could somebody please guide me on how to set up this somehow complex situation in the GL?

Thanks a lot!!