Note: The following functionality is only available to accounts integrated with QuickBooks Online. For advice on how to process Canadian secondary tax rates with Xero, please check out this manual.
Canadian businesses deal with many sales tax rates, including secondary taxes being applied in a single item. Receipt Bank can extract the different tax amounts and publish them to QuickBooks Online as absolute values rather than percentages.
To configure secondary tax extraction for Canadian accounts, first ensure the account meets the following criteria under the Account Details tab of the Account Settings:
- Base Currency = CAD - Canada, Dollars
- Account Country = Canada
This will allow you to turn on the switch labelled, Extract Secondary Tax.
- Navigate to the General (Receipt Bank Extract) or Integration (Receipt Bank Streamline +) tab of the Account Settings;
- Under Default Tax Rate, select the tax rate for the province with which you do the most business (usually your home province) from the list of rates in your QBO account. For this example, we are in British Columbia so I will select GST/PST BC;
- Under GST rate, select the tax rate that corresponds to your GST/HST/TPS rate in QBO. Here we will choose GST;
- Under PST rate, select the tax rate that corresponds to your PST/QST/TVQ rate in QBO. Here we will choose PST BC;
- You can also select a default exempt tax rate so that any tax amounts of $0 are published to QuickBooks Online under the correct rate. Click here to learn more.
You can override this by selecting a tax rate from the Tax dropdown menu in Receipt Bank on an item-by-item basis.
How Secondary Tax Rates are Extracted and Published
On all subsequently submitted items there are two additional fields that represent two extracted tax amounts:
If Extracted Amount is selected under the Tax, both the extracted tax amounts will be published to the corresponding GST and PST fields in QuickBooks Online:
If only one of the tax rates is present, only it will be published and a tax-exempt line will be added if applicable.