Breeze automatically adds taxes to charges and payables where applicable.
In the example shown above, the property is in Toronto, so tax rates for Ontario are used.
For payables, the tax depends on the property's location AND the vendor's location. If they are in the same province, the rate for that province is used. In the following example, both the property and the vendor are located in Ontario.
If they are in different provinces, you can choose which rate should apply.
In the example shown above, the tax defaults to the property's province, but you can select the vendor's province, if needed.
PST Exempt Scenarios
Some business entities are PST exempt. You can mark vendors as PST exempt for payables, and you can mark properties and owners as PST exempt for charges, payables, or both.
Tenants can be marked PST exempt for all charges, or you can mark individual scheduled charges as PST exempt.
Editing Taxes on Transactions
In some cases, the default taxes are not applicable. For example, the default for the Saskatchewan includes GST and PST, but for some transactions, you only need to charge GST. And some transactions are exempt.
On the transaction screen, you can change the default tax amounts. For an exempt transaction, select the No Tax check box. If you need to charge only GST, you can click the click the edit icon on the PST line and change the amount to zero.
Tax Setup
The setup for taxes has been done for you -- there is no need to make any changes, unless the rates change or you need to modify the accounts the taxes are applied to.
To view the setup page for taxes, go to Admin > Tax Set Up.
Each line represents the tax setup for a Canadian province. The setup for Ontario is shown below.
To make changes to the tax set up, click the Edit icon (the pencil). You will need to make changes:
If tax rates change.
If you add a new account to the General Ledger, and you need to include it in the tax setup.
If you want to include Balance Sheet accounts. (By default we have included all the existing Income Statement accounts.)
Note: There are more accounts on the screen than are shown in the screenshot above.
GL Accounts for Taxes
There are three GL accounts designated for taxes:
On the Account screen, each account is marked as a tax account.
Do not edit the tax accounts -- changing the account setup will have a negative impact on tax functionality.