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Sales tax in Canadian entity.

Posted on by 458

 

  • DNJ Profile Picture
    DNJ 458 on at
    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.
  • Suggested answer
    Giorgio Bonacorsi Profile Picture
    Giorgio Bonacorsi 315 on at
    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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