Sage 300 and the New Sales Tax Rules for Companies Selling to Canadian Customers

There is new Canada sales tax legislation that came into effect July 1, 2021, which requires any non-Canadian company selling into Canada to collect, file, and remit Canadian HST or GST.  Does your company sell to Canada? Here are some questions for you to consider:

  • Do you sell more than $30,000 CAD in products or services to Canadian customers? (During any 12-month period beginning on or after July 1, 2021)

  • Do you sell digital products or services (online music streaming for example) to Canadian consumers who are not registered for GST/HST?

  • Are you a non-resident distribution platform operator? Do you make, or facilitate, supplies for Canadian consumers through your platform?

If you answered ‘yes’ to any of these questions, your company may be required to register for the Canada sales tax (GST/HST).  For more information on the requirements and how to register and remit GST/HST, check the Government of Canada website.

To help you manage this though, Sage 300 has the functionality to easily support the collection, reporting and remittance of these new taxes.  The Tax Services module will assist with creating the new tax authorities, and enable you to setup various tax classes to differentiate taxable items & customers or vendors.  In the same Tax Services module, you can setup the percentage for each of the new taxes, and create Tax Groups which will combine all the relevant tax authorities into one bundle.

The other option is to simply have Sage 300 calculate the taxes for you by subscribing to the Sage Sales Tax module (aka Avalara AvaTax). This module takes all the confusion out of collecting and remitting the Canada sales tax, and will ensure that your company is in compliance with all the rules and regulations. 

Sage 300 Canadian Sales Tax

Equation Technologies can help you setup and configure the new taxes within Sage 300 for your customers and items, or we can help implement the new Sales Tax module (Avalara AvaTax) that will do everything for you.  Either way, we can take the pressure off your accounting staff.  Give us a call today!  760-436-3520 or 866-436-3530 or support@equationtech.us.

 

Topics: Sage 300 (ACCPAC), Sage 300cloud

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