GST Rate (A90)

Purpose: Use this screen to define the default GST (goods and service tax) rate.

Percentage field: Enter the GST rate that will default when entering orders for Canadian companies or for orders shipped to Canada. The GST rate can be overridden in the SCF or Postal Code Tax tables. This field is 5 positions with a 2-place decimal.

The default GST rate is a federal Canadian tax applied to all orders, unless exceptions exist. This tax is levied on merchandise shipped to and within Canada. This tax structure applies only to companies that operate in Canada and only to orders that are shipped within Canadian boundaries.

Example: In 2006, the current GST Rate was 7%. This tax is levied on all orders that may include merchandise and, optionally, freight charges.

The system calculates GST on an order only if a GST/PST tax method is defined in the SCF or Postal Code table.

When is GST not used? Without any overrides, GST is calculated by multiplying the GST by the taxable total on the order; however, any exceptions to this default may include:

• Override by Item: The GST Tax Exemption table is used to establish tax exceptions for specific items in different provinces. This table accommodates situations in which the GST and PST apply to an item in one province, yet in another province, only the PST or the GST applies. This table is also used to define an item as non-taxable in a particular province.

• Override by Province: Establishes an override at the province level that is higher or lower than the default GST Rate. You can override the GST rate that applies to a specific province in a particular SCF or postal code. In some cases, the government has made a stipulation that a particular province can be subject to a GST rate higher or lower than the average.

• Override by Customer: Establishes exceptions or exemptions for a customer to GST or PST (Canadian Provincial Services Tax).

• Orders subject to VAT: If you select the Tax Included in Price (E70) system control value, orders to certain provinces may be subject to tax-inclusive pricing and VAT rather than GST and PST. See the description of this system control value later in this topic for more information.

For more information:

• see Working with SCF Codes (WSCF) for more information on working with SCF tax rates.

• see Setting Up the Zip/City/State (Postal Code) Table (WZIP) for more information on working with postal code tax rates.

• see Working with GST Tax Exemption Status (MGTX) for more information on working with GST item tax exemptions.

• see Working with Customer Tax Status for more information on working with customer tax status.