What Determines the Tax Rate Options Available when Recording Sales in Accounting?

In this article, you will learn what determines the tax rate options available when recording sales in Sage Business Cloud Accounting

Sales taxes in Canada are destination based. Consequently, the Delivery Address (along with your registration status) determines the tax rate options available when recording a Sales Invoice. If you do not enter a separate delivery address, the customer’s Invoice Address will appear as the delivery address on the invoice and determine the available tax rate options.

In some cases, you may need to charge taxes for one province while sending the invoice to the customer located in another province.

• For example, if you are delivering goods to British Columbia for a customer with an office in Ontario, you will need to record separate invoice and delivery addresses.
• Creating an invoice with a delivery address in British Columbia will allow you to select the appropriate tax rates based upon the destination based tax system.
• Selecting an invoice address in Ontario will allow you to deliver the invoice to the customer’s office in Ontario.