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Sales tax in Canadian entity.

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Posted on by DNJ

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DNJ 510 on at

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Sales tax in Canadian entity.

HI Giorgio Banacorsi,

Thanks for the reply.

I have the same setup

I am looking for something different. We get the right amount until expense posting, but when the expense is posted to Project, it includes the nondeductible tax . We will try to remove it from the project posting. So we will not charge the Project customer.
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Giorgio Bonacorsi 665 on at

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Sales tax in Canadian entity.

Hello,

Non-deductible means the sales tax purchase that we cannot recover. So, the percentage of the non-deducible amount should be absorbed by the expense. In the example that you propose, there are two alternatives:

The non-deducible amount is 100%, because you absorb the integrality of the sales tax (expense=87+11.31)

Or the non-deductible amount is 50%, and the calculation should be (expense=87+5.65)

Below is an example of a configuration for a sales tax code 13% with 50% non-deductible:

Sales tax calculation:

Voucher:

Thank you,

Giorgio

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