If you do not already have the GST, PST and combination taxes from the past and only have the HST tax, the first step is to:
Create the GST & PST tax codes.
Open the Tax Rates window [Red Arrow] > Highlight the HST tax [Green} > Click Duplicate icon [Blue Arrow] > a new Tax Code window opens [Purple] > Assign a unjique Code e,g “G”, a name GST [Red Square] > Set the Changeover date as April 1, 2013 and set Rate 2 at 5% > click OK to close the G tax code window….
Note the Tax Received and Tax Paid accounts should be the same as the HST was or is. They will be reported in the same report.
Create the PST tax code.
Click the New icon [Green Arrow] > a new empty Tax code window will open > assign a P code and PST name > Select Tax Type “Sales Tax” [Purple Arrow} > enter a “Tax Received” account that is different than the one used by the GST/HST codes (account code setup below), Set the change over date to April 1, 2013 and enter 7% as Rate 2.
Create the combo tax code (GST & PST)
Click the new icon [Green Arrow} > a new Tax code window will open, enter T oe some other unique code and GST & PASt as a name. Select Tax Type “Composite Tax” > Click the New icon [Orange Arrow] > enter G in the first code column and push you tab key on your keyboard and the Name – GST and 5% will auto enter, Click the add a line icon again and enter “P” in the second line and push you tab key, auto entering name and active rate. Click OK and you have created your new GST/PST account.
Assigning the T code as a default
The default tax codes are assigned to the accounts in your chart of accounts and thus the new T code will have be replace the existing H code. Open your accounts (Show menu > Accounts) > Select All [Green Arrow] > Click the Find icon Red Arrow > The find window will open > select TaxCode from the drop down list on the left > select “is” from the second drop down list and enter “H” in the search field > Click Find button…
All the account codes with H as the default tax code will be listed… Highlight all the accounts (Apple Command key + A or Windows Control Key + A) > From the SElect menu [Green arrow} > select Replace > the Replace window will open > choose TaxCode from the drop down list > type T in the empty field and click the Replace key > T will become the default tax code for those accounts,
Note: Since the BC government has not at this date & time defined what will be both GST & PST or GST only or exempt etc. the assumption in this article is to replace HST with GST & PST combined. If certain accounts (expenses etc.) end up being just GST or exempt, they can be changed individually by opening the affected account code and changing the default.
Displaying the GST & PST on your invoices and receipts,