Canada Tax Codes

GST/HST tax code was manually created and assigned in the Tax Item field on the customer record. However, when creating or editing a sales order, the tax code is not automatically populated and is not available on the list of selections in the Tax Code field of the line item.

Also, the ‘Tax Code List Include’ field is not available for Canada Nexus on the Set-Up Taxes page.

This is because, for Canada Tax, the system requires Tax Groups to be used, instead of Tax Codes.

Create a Tax Group:

1. Go to Setup>Accounting>Tax Groups>New>Canada
2. Assign a Name for this Tax Group.
3. Provide a description of the Tax Group.
4. Indicate the relevant Province.
5. On the Subsidiaries, select/highlight the Parent Company and tick the Include Children checkbox.
6. On the GST/HST field, select the manually created Tax Code. The rate field will be automatically populated base on the tax code selected in the GST/HST field.
7. On the PST field, select the relevant tax code. The rate field will be automatically populated base on the tax code selected in the PST field.
8. Click Save.

Update Relevant Tax Schedules:

1. Go to Setup>Taxes>Tax Schedules.
2. Open relevant tax schedules for items transacted with customers from Canada.
3. Click the Non-US Nexuses tab and update the Sales Tax Code and Purchase Tax Code for Canada.
4. Click Save.

Update Tax Item on Customer Record:

1. Go to List> Relationships>Customers.
2. Look for the relevant customer record and click Edit.
3. Go to the Financial tab and set the Tax Group in the Tax Item field.

Since the change in tax setup is prospective in effect, it will not automatically update the tax code on transactions already created prior to the change. To update the tax code in the existing transaction, edit the sales order, remove the line item and add it back.