To charge double tax; that is, 5% federal and then 7.5% provincial on the cost of the item PLUS the cost of the federal tax (Poor over-taxed Canadians), Derek presented a great solution:
Derek Atkins wrote: > > In short, create a tax table with two entries: > > Tax1 (x%) x% > Tax2 (y%) (1+x%)*y% > > So in your case: > > TPS (5%) 5% > TVQ (7.5%) (1+5%)*7.5% = (1.05)*7.5% = 7.875% > > Works great! > > I am also wrestling with this issue. If I'm hearing this correctly then I just need to ensure that there are the appropriate liability accounts in place to handle it all. From a great tutorial http://linas.org/mirrors/www.aerospacesoftware.com/2003.06.21/GNU_Cash_for_Business_users_Howto_Guide.html Gnucash for Business Users Guide I learned to create the GST (which is called TPS in Quebec) Liability Account with two sub accounts: GST/TPS (Liability) -> GST Collected (liability) -> GST Paid (liability) So now I'm guessing I need to also create a TVQ/PST account in exactly the same way. TVQ/PST (Liability) -> TVQ Collected (Liability) -> TVQ Paid (Liability) So, while you have given a technical response that appears to be the right answer, are you able to tell me if what I am doing with my chart of accounts is valid from an accounting angle? I am very new to this but I think I'm starting to get it. -- View this message in context: http://n4.nabble.com/Double-taxing-tp1774102p1788747.html Sent from the GnuCash - Dev mailing list archive at Nabble.com. _______________________________________________ gnucash-devel mailing list [email protected] https://lists.gnucash.org/mailman/listinfo/gnucash-devel
