How to configure tax tables for GST

[Derek Atkins]

Hi,

Glenn Ramsey <gr at componic.co.nz> writes:

> Hi,
>
> I am planning to migrate from MYOB to Gnucash for my small business
> accounting and would like some clarification on how to configure
> Gnucash to calculate New Zealand GST.
>
> The 3-account naming scheme in the FAQ [1] looks like it will suffice
> for my needs. The FAQ says (I think) to set up a single tax table for
> GST, but is not clear on which account to select for the GST tax table
> entry.
>
> By experimenting I see that if there is only one tax table entry for
> GST then the GST amount for both invoices and bills gets put in one
> account with GST collected and GST paid appearing as a decrease or
> increase respectively. Therefore, I assume that different tax table
> entries are required for income and expenses as described in [2]. Is
> that correct?

Generally, yes, you use different tax tables for Invoices and Bills.

> Also in New Zealand we have the option of calculating GST using either
> an invoice basis or a payments basis. The above setup seems to be
> relevant for an invoice basis. If using the payments basis the GST
> amount should not go into the Liabilities:GST account until the
> payment is made or recieved. MYOB does this (I think) by posting the
> GST amount to Receivable and Payable and then transferring it to the
> GST account when the payment is made. Is it possible to have such a
> setup in Gnucash?

GnuCash does not support Cash-based accounting with the business features.

> Thanks
> Glenn
>
> References:
> [1]
> http://wiki.gnucash.org/wiki/FAQ#Q:_How_do_I_handle_VAT.2FGST_on_invoices.2C_and_claim_VAT.2FGST_rebates_on_purchases.3F
> [2] http://gnucash.wikia.com/wiki/Create_Tax_table_for_VAT
> [3] http://lists.gnucash.org/pipermail/gnucash-user/2009-April/029189.html

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-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
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