Quebec sales tax

[Derek Atkins]

Somen,

Yawar Amin <yawar.amin at gmail.com> writes:

> Hi Somen,
>
> On 2012-02-20, at 07:25, Somen wrote:
>
>> Hi,
>> I live in Québec where Quebéc sales tax is added to items purchased after Federal sales tax has been added to that item.  i.e. We pay Québec sales tax on the item when its Federal tax has already been added in. How do I enter an item to account for this double sales tax addition?
>> Somen
>
> I’m not very familiar with GnuCash’s automatic sales tax handling, if there is any, but here’s how I would enter the transaction (using example accounts and dollar figures and also assuming QST of 7% on top of GST, let me know if I’m wrong):
>
> 20 Feb 2012 Buy Food
> Debit  Expenses:Food    $1.00
> Debit  Expenses:Tax:GST $0.05
> Debit  Expenses:Tax:QST $0.0735
> Credit Assets:Wallet    $1.1235
>
> Note that this would have to be done in a split transaction-entry mode or in the General Journal; and you would ask GnuCash to calculate the tax amounts for you while entering the transaction, by just entering the calculations e.g. for GST .05*1 and for QST .07*1.05*1. The remaining credit amount should be entered automatically by GnuCash as the balancing amount.
>
> Hope that’s clear; if not, let me know and I’ll try to get you a screenshot.

Note that the only "automatic" tax calculations are in the business
features (Invoices and Bills).  If you are hand-entering data then you
will need to manually add the Splits.  HOWEVER, the number entries can
do math, so you can enter the string "1234.22 * .05" to compute 5% of
1234.22

As for computing GST and PST, there should be a FAQ that explains the
math on how to compute the "tax on the tax".

> Regards,
>
> Yawar

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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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