My organization is based in Canada. A separate Provincial Sales Tax(PST) is levied in addition to the GST. How do I record the two taxes together in Zoho Books?
If your organization is based in Canada, a separate Provincial Sales Tax(PST) is collected in addition to the GST.
In this case, you will have to create a tax group. Follow the steps below to create a new tax group,
- Click on the Gear Icon and select Taxes.
- Click on + New Tax Group option under the New Tax drop-down, placed on top right of the taxes window.
- Before you add a tax group, you need to have taxes already added.
- Enter the name of the tax group and select the taxes that needs to be added.
- Finally, click on Save to create the tax group.
If one of the taxes is a non value added tax:
In some provinces, tax on purchases cannot be reclaimed. In this case, the tax cannot be treated as a liability but an expense.