Canada Data Provisioning Enhancements
The Canada Data Provisioning Enhancements feature takes into account the specific tax determination in Canada, such as Goods and Services Tax (GST), Provincial Sales Tax (PST)/ Retail Sales Tax (RST)/ Quebec Sales Tax (QST), and Harmonized Sales Tax (HST).
Previously, SuiteTax had a restriction on using Canada nexuses. You had to allow the Canada functionality manually on your account. The restriction is removed.
PST and RST provinces, except Quebec (QST), have both a claimable and non-claimable tax type.
Based on the tax type, there are relevant tax codes: both claimable and non-claimable PST and RST tax code for all relevant provinces. The claimable tax code is used on sales transactions, while the non-claimable one is used on purchase transactions.
NetSuite has created tax groups instead of a single combined tax code for PST, RST and QST provinces. A sales tax group contains GST and claimable PST/RST/QST. A purchase tax group contains GST, non-claimable PST/RST, and claimable QST.
NetSuite also creates tax agencies for Canadian nexuses.
Tax account creation happens similarly to other VAT countries, as follows:
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A sales tax account includes tax on sales and a nexus name.
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A purchases tax account includes tax on purchases and a nexus name.
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A tax liability account includes tax liability and a nexus name.
We recommend you use a combination of country and province for your nexus names. Please set a parent nexus on province level nexuses to be able to start data provisioning.
NetSuite also adjusts nexus default tax codes and tax groups for all provinces based on the new data structure.