Canadian GST PST

[Brian Dolbec]

On Mon, 2006-13-11 at 13:48 -0500, Derek Atkins wrote:
> Brian Dolbec <brian_dolbec at telus.net> writes:

> > I was just snooping around and apparently gnucash is lacking proper
> > handling of multiple taxes.  I did figure out a workaround for
> > invoicing, Bills entry is the same.
> 
> No, it handles multiple taxes just fine.. You just need to enter
> them together into a single tax table.  So instead of setting up
> FOUR tax tables, you would set up TWO:
> 
>   GST/PST Collected:
> 
>   6% GST -> L:GST:Collected
>   7.5% PST -> L:PST:Collected
> 
>   GST/PST Paid:
> 
>   6% GST -> L:GST:Paid
>   7.5% PST -> L:PST:Paid
> 
> Now, these numbers don't handle the fact that you have to pay tax on
> tax.   I don't recall which tax get's taxed, but the way to handle that
> is to increase the other tax to add the extra.  So, for example, let's
> assume you have a $100 bill that get's the 6% GST ($6) and then the 7.5%
> PST is on the $100 bill + $6 GST..  So 7.5% of $106 == $7.95.  E.g.,
> you can accomplish this by setting the PST to 7.95% instead of 7.5%.
> 
> I'll note that 7.95 is also computed by taking PST * (1 + GST), e.g
> 
>   NewPST = 7.5 * (1 + 6%)
> 
> or
> 
>   NewPSG = 7.5 * (1 + 0.06) == 7.95 (%)
> 
> Voila, you've now got two tax tables that handle all your PST/GST.
> -derek

Way cool way to do it. :)  Up till now I have not had to deal with PST
except as an expense.  Now we have to charge PST on part of some of our
products, not the entire sale price.  This gives me some ideas how to
program our cash register to handle this tax weirdness.

Thank you...

-- 
Brian Dolbec <brian_dolbec at telus.net>