|
July 1st 2010 is fast approaching and the
Provinces of British Colombia and Ontario are following the lead of their
maritime cousins and implementing a Harmonized Sales Tax to replace the
existing Provincial Sales Tax and the Goods and Services Tax.
For the official government spin on all of this you
can refer to the following websites:
http://www.cra-arc.gc.ca/harmonization/
http://www.rev.gov.on.ca/en/taxchange/
http://www.gov.bc.ca/hst/
What you really want to know is how does MXP handle
the new tax?
Well the good news is that you do not require any new
software. If you sell to any of the Atlantic Provinces (except PEI) then
you are already dealing with HST.
The Reader’s Digest version of what you have to do is
as follows:
·
Modify the tax codes of the affected
provinces to reflect the new rates. Ontario 13%, BC 12%. Add new
descriptions and change the GL code to reflect the new HST GL code.
·
Change all customers in the affected
provinces to GST exempt – yes, PST exempt – no.
·
Make changes to any forms if required.
Of course all installations are unique and there may
be more or less to do depending on your situation. Call your local
support person for more details and how we can help in this process.
There are a few things that you want to think about
and be prepared for when July 1st comes along. You will have
to find a way around the problem if you have a single customer in MXP with
multiple “ship-to” destinations in provinces with HST and without
HST. Although it is the “ship-to”
province that dictates the Tax code to use, it is the customer that
determines the exemption status. In this case you will probably want to
set up different customer codes. Also you will have to have a policy on
how to deal with Credit Notes after July 1st that relate to
invoices prior to July 1st.
A final note is that all the confusion over whether or
not our Software Services or Network Services are taxable is now over.
EVERYTHING Chassels Computers delivers is now taxable. Hardware,
Software, Services, Maintenance Plans, Supplies. More good news is that for most of you
this tax will now be an Input Tax Credit. Plus you have reduced
administration in not having to deal with the PST in Ontario and BC. I
know that I will appreciate that.
|
