Tax Codes calculation

I have entered my HST Tax  under Setup → Settings → Company → Sales Tax with Tax Code rate of "13" for 13 percent, however, when I enter an invoice in the purchasing module it is calculating the tax at 11.5 percent.  Can someone tell me how to correct this please?

Parents
  • 0

    When you type in a $100 expense and the HST tax code, does the journal entry report show you an expense of $100 or about $88.50?

    If it is the latter, then you have set up your tax code as Tax included in Price = Yes.  When using a code like this you would normally enter $113 to get an expense of $100 plus $13 HST.  You would not enter $100 to get $13 in HST.

    Setting the tax code to No for Included in price is likely what you were expecting.

Reply
  • 0

    When you type in a $100 expense and the HST tax code, does the journal entry report show you an expense of $100 or about $88.50?

    If it is the latter, then you have set up your tax code as Tax included in Price = Yes.  When using a code like this you would normally enter $113 to get an expense of $100 plus $13 HST.  You would not enter $100 to get $13 in HST.

    Setting the tax code to No for Included in price is likely what you were expecting.

Children