How do I handle the harmonized sales tax with DT Max?All those registered for purposes of the GST in Canada who make taxable sales to clients in Nova Scotia, New Brunswick, and Newfoundland and Labrador, must collect and pay the 15% HST (harmonized sales tax).Because DT Max assumes that all tax preparers are registered for GST or HST, the rates of 7% and 15% for GST and HST respectively are entered as defaults. If you are not registered, you must change these rates to 0%. Since DT Max did not enter the provincial sales tax rate, you must enter this particular one yourself. HST is charged to anyone whose tax preparer's address is in Nova Scotia, New Brunswick or Newfoundland and Labrador. Further, for any tax preparer not resident in an HST jurisdiction, HST is charged to anyone whose Province is Nova Scotia, New Brunswick or Newfoundland and Labrador. The provincial sales tax is charged to anyone who is not subject to HST and whose Province is the same as the tax preparer's. GST is charged to anyone who is not subject to HST. DT Max uses the keyword Province because that is deemed to be your client's billing address at the time of billing and not necessarily on December 31 of the tax year. October 15, 2002 |
