• Registered: 07/22/2013
  • Posts: 6

Topic: Import Tax

Hi all,
I need some help on setting up an import tax.   Let’s say an item is $100.00, I need to setup an import tax of 5% and then on top of that I need to do the other taxes.
Import Tax Calculation:
$100 + 5% = $105.00

Provincial/Federal Tax:
Now, I can calculate the proper provincial/deferal tax
$105.00 + 13%GST/HST

Please any help / ideas are welcome!
Paul

  • joe
  • Administrator
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: Import Tax

Please read in the frontaccounting wiki about tax on tax (The Canadian model).

Joe

  • Registered: 07/22/2013
  • Posts: 6

Re: Import Tax

thanks Joe. Are you suggesting "Using Tax on already added Tax (Some Canadian Regions use this)"  or "Import Tax"
I've tired "Import Tax" and for some reason it didn't work.  Maybe, I am doing something wrong.

  • joe
  • Administrator
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: Import Tax

Well the idea is to use the Canadian model for the import tax. Try to experiment on the Training Co.

Joe

  • Registered: 07/22/2013
  • Posts: 6

Re: Import Tax

Hi Joe,
thanks.  I tried some options and it is not working. I read the wiki multiple times, but the final amount is not the proper one.
Is there a way that I can set up a Quick Entry, so when I create the Supplier Invoice I just have to enter the amount that is corresponding to the Import Tax amount which will be allocated to the Import Tax Account, and at the same time increase the base amount of the invoice, so when the system calculates GST, it will present the total based on the total items plus the quick entry that I described?
If there is another way that I can get help, please let me know.  Without being able to log the import tax, I can't start using the system sad .


thanks

  • joe
  • Administrator
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: Import Tax

I cannot Think of anything better. Maybe some of the members here can help you.

/Joe

7 Reply by apmuthu (edited by apmuthu 09/05/2013 07:17:27 am)

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: Import Tax

Create a dummy client / supplier to whom you sell the goods at the first 5% tax and then buy from that client/supplier at 13% tax using the original price with the 5% tax as your cost..... Confusing I'm sure - just kidding....

apmuthu's Website

  • Registered: 07/22/2013
  • Posts: 6

Re: Import Tax

thanks all.
I think the simplest solution and it seems to work perfectly fine (at least in Canada) is the following:
Company is in Canadian Dollars
Supplier - tax exempt (Supplier is in a different currency)
GL Account for Custom Duties

Send a normal PO with the supplier price in his currency.
After receiving the PO, create a "Supplier Invoices'
Manually enter the Account for Custom Duties (note, it will need to be converted to the Supplier currency because the invoice follows the supplier currency, even thou the Invoice sent is normally already converted to either US or CAD dollars)
Manually enter the GST tax - also converted to the supplier currency.

system will display the "Sales Tax" at the bottom of the invoice, but it won't add twice.

Please folks correct me if I am making a mistake here and/or leading others to do something wrong.

Who should I talk to to find out more a potential partnership with frontaccounting? Any idea Joe?
thanks