GST Item Status Default (A91)

Purpose: Use this screen to define the GST default tax status when a new item is created.

Code field: Enter the code that defines the default tax status that applies to items subject to GST and PST tax.

The appropriate tax will be calculated on all items ordered and on freight, if applicable.

The defaults are:

• P = Only the Provincial Services Tax (PST) applies to items. This is a province-level tax.

• G = Only the Goods and Services Tax (GST) applies to items. This is a federal tax.

• B = GST and PST apply to items.

• N = Neither tax applies.

You can establish overrides for items being shipped to certain provinces. The Work with SCF Codes function allows you to establish GST and PST rates for a geographical area; the system then uses the default GST item status for each item. See Working with SCF Codes (WSCF) for more information.

You can also establish GST and PST rate information for a postal code; if you define information at this level, it overrides the SCF rates. See Setting Up the Zip/City/State (Postal Code) Table (WZIP) for more information.

You can override the GST status for individual items by province as well. See Working with GST Tax Exemption Status (MGTX) for more information on working with GST tax exemption status for items.

Note: You must set this system control value to B to use a GST or PST tax exemption for items in provinces.

Example:

• Default GST rate in the System Control table = 7.00

• Default GST Item Status Default in the System Control table = B

Example 1	PST defined for the SCF = 5.00 GST field for the SCF is blank no override defined for the item in the GST Tax Exemption Status table GST of 7% and PST of 5% charged for the item (system uses default GST and GST Item Status Default from the System Control table)
Example 2	PST defined for the SCF = 5.00 GST defined for the SCF = 6.00 no override defined for the item in the GST Tax Exemption Status table GST of 6% and PST of 5% charged for the item (system uses GST override defined for the SCF and GST Item Status Default from the System Control table)
Example 3	PST defined for SCF = 5.00 GST field for the SCF is blank override tax status of G (calculate GST only) defined for the item in the GST Tax Exemption status table GST of 7% only charged for the item (system uses the default GST from the System Control table and the override tax status for the item defined in the GST Tax Exemption Status table)

GST and PST are Canadian taxes that apply only to companies that operate in Canada and only to orders shipped to and within Canadian boundaries. The Goods and Services Tax (GST) is a federal tax applied to all orders, with some exceptions. The Provincial Services Tax (PST) applies only to orders shipped into a province, with some exceptions. These exceptions are explained for the control value, GST Rate (A90).