Non-recoverable tax

21

These comments imply that you can make purchases with and without PST, therefore does this mean you need to use both 5% & 4.6729% GST on purchases.

For the purchase to include or not include PST how does the Supplier know if the items are going to be resold or not. E.g. Printer paper supplied to a stationery shop v’s an end user

To use the suggested above formulas to report the PST paid how do you propose calculating the total of PST purchases, you could group the PST affected expenses together on the P&L so it provides a sub-total.

What is the position with purchasing Fixed Assets, do they incur PST as they aren’t being resold

In the longer term @lubos statement “I guess the best approach would be to extend custom tax codes so you can enter both tax components GST+PST at 5% and 7% and mark PST tax component as non-recoverable.” would be beneficial as it could possibly also address the Withholding Tax issues that others are having - accept that one is an addition and the other is a subtraction

22

Suppliers who I purchase resellable items from do not charge me PST. Other who I only purchase supplies through, I have not setup an exemption account, so they charge me PST. If I use an item bought from a supplier that does not charge me PST I need to self assess the PST. Currently I do this by doing an inventory write off into the expense category with a PST only tax code. This seems to work fine, not sure if there is a better way.

I now have 4 tax codes in the system, GST/PST, GST, PST, GST (Effective rate). I don’t see any issues yet by doing it this way, but if I do I will be sure to comment it here.

23

Did this ever get anywhere?

I still don’t see a flag on tax codes or tax rates (for codes with multiple rates) to flag as recoverable or non-Recoverable?

24

Nothing has changed in this respect.