In some countries such as Canada, Tekmetric shops are responsible for reporting two different types of sales tax. For example, several provinces must report income eligible for the provincial sales taxes (PST) and the goods and services taxes (GST). This article will walk shops through the best way to determine how to effectively pay the PST and GST in your shop's territory.
Configuring & Calculating Dual Tax Rates
In this example, the PST tax rate is 5%, and the GST tax rate is 6%.
Setup your dual tax rates in Tekmetric
- Set your GST as your tax rate at 6% within shop settings > RO Settings > Taxes.
- Set your PST as a non-taxable fee that is a percentage of 5% that is applied to parts, labor, & sublets within shop settings > RO Settings > Shop Fees.
Calculating your GST and PST Taxes
Step 1. Run your sales tax report by going to reports > financial reports > sales tax report. This will provide you the GST taxes.
Total GST Taxes due are: $274.87
Step 2. Run your fees report by going to reports > financial reports > fees report. This report will show you the PST taxes for labor, parts and sublets.
PST taxes for labor, parts, and sublets = $298.34
Step 3. Run your end of day report, you will subtract your PST fees from your fee total in the sales after discounts table and then multiply 5% to get the PST tax for your fees.
PST Taxes for fees are:
$508.39 - $298.34 =$210.05
$210.05 * 5% = $10.50
Step 4. You will then add the PST taxes for your fees on the end of day report and the PST taxes from your parts, labor and sublets on your fees report to get the total PST taxes due.
Total PST Taxes: $298.34 + $10.50 = $308.84
At this time, the steps above are the best solution for the time being. If you have any additional questions about calculating your dual taxes please contact the Customer Success team at 832-787-0900.