Canadian GST/HST

Goods and Services Tax (GST) and Harmonized Sales Tax (HST) can be managed using the Canadian PALS.

Maintaining GST/HST Tax Rates

1. Select File > Setup > Set GST/HST Tax Rates.

2. The GST/HST window appears listing all available tax rates from January 1, 2008 for the selected province. NOTE: Province defaults to the province you have selected for your tax jurisdiction in Company Preferences when setting up the Canadian PALS. Select the appropriate province as necessary.
   
   

3. Do any of the following:

   1. To add a tax, click the Add button (). A new, blank row appears on the window. Complete the fields for the new tax. Click the Save button () when finished.

   2. To edit a tax, change the values in the boxes as necessary and click Save.

   3. To delete a tax, click the Delete button () for the row.

4. Click Done to save your changes and close the window.

GST/HST Billing

After GST/HST rate maintenance is complete, the amount of GST/HST and sales tax is calculated during billing based on the rate effective on the invoice date in the tax jurisdiction for the matter. If the tax jurisdiction of the client matter follows GST+PST rate type, the sales tax and GST/HST are calculated separately. Once matters and the client expense have been set up as taxable, taxes are calculated on fees and costs at the time of printing bills.

GST/HST Posting

Posting the bill creates a journal entry for GST/HST transactions:

And, an entry for GST/HST in the matter billing activity:

Client Payments/Refunds

When payment is received for the invoice, the GST/HST Receivable account is credited and the Operating account is debited. If the client is refunded, Tax Amount is automatically populated.

GST/HST Report

The GST/HST report lists the transactions for Goods and Services Tax (GST) and Harmonized Sales Tax (HST) for the selected date range.