Set up the Taxes

1. Select Setup, Settings, Company, Sales Taxes, then Taxes.
2. Complete all fields as they apply to your company or region.
3. Doing business in multiple provinces requires a separate report for each province.
   • Set up separate taxes for each province
     • For example, PST BC for PST British Columbia, and PST SK for PST Saskatchewan
   • For Acct to track tax paid on purchases, select your tax Paid on Purchases account
4. For Acct to track tax charged on sales, select your tax Charged on Sales account.
5. Select Yes for the Report on taxes to have Sage 50 Accounting generate tax reports.
6. Click OK.

Set up the Tax Codes

1. Select Setup, Settings, Company, Sales Taxes, Tax Codes.
2. Select the Code Column.
3. Enter up to two letters for each code, such as G for GST, GI for GST included, or GP for GST and PST.
4. Double-click on the Code or use the Enter key to open the Tax Code Details window.
5. Under the Tax Column, double-click and select the appropriate tax.
6. Ensure your status is correct.
   • Taxable: If you want the tax calculated and charged
   • Non-taxable: If you want no tax calculated, but amounts reported
   • Exempt: If you don’t want tax calculated, but amounts reported
7. Enter your tax rate (without percent) in the Rate Column.
8. If you want to charge tax on top of the current price, Included in price must be No.
    NOTE: If you select to include tax in the price, you must enter the total amount after tax on the invoice. To see the tax breakdown, open the transaction detail report in the invoice menu. 
   
9. See your province's website to see if the provincial sales tax Is Refundable.
10. OK.
11. Select OK to close.

Once you've set up sales taxes, assign vendor and customer default tax codes if needed.