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Former Member
Oct 19, 2012 at 04:15 AM

Canada Tax changes 2013

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Hello experts,

We are working on an scenario where there is new QST change in quebec canada from April 1 2013,Need your suggestion

We use taxware to calculate canadian taxes .I am not sure if we need to change something in our pricing procedure as we are getting results from taxware

currently The tax condition types: XR1 is GST, whereas XR2 is QST.

Calculating the Taxes 2012 Example

You sell a taxable good for $100. Taxes are calculated as follows:

Selling price $100.00

GST ($100 × 5%) $5.00

QST ([$100 + $5] × 9.5%) $9.98

Total $114.98

Change in the calculation of QST as of January 1, 2013

As of January 1, 2013, QST will be calculated directly on the selling price not including GST. The QST rate will also increase from 9.5% to 9.975%. For consumers, the total taxes payable will generally not change.

Example of sales tax calculation as of January 1, 2013

You sell a taxable good for $100. Taxes will be calculated as follows:

Selling price $100.00

GST ($100 X 5%) $5.00

QST ($100 X 9.975%) $9.98

Total $114.98

The QST paid remains the same.

Any thoughts will it require any change to our current set up or taxware update will work fine.

Thanks for your time

Amy