Defining the GSTINC tax authority (Asia-Pacific)

The GSTINC tax code is a special tax authority for clients in countries other than Canada (notably countries located in the Asia-Pacific region) that use the Canadian taxation method for calculating taxes and also include the GST tax in the advertised unit price of products and events.

The GSTINC tax authority assumes a product’s advertised price already includes applicable taxes. When the GSTINC tax authority is applied, taxes are extracted from a product’s advertised price when an order is entered. For example, a product with an advertised purchase price of 150.00 that includes a 12.5% GST tax will have a unit price of 133.33 with a sales tax of 16.67.

Both the GSTINC and Primary GST tax codes have similar functionality, and both tax codes are set up exactly the same way. The difference between the two is that GSTINC extracts calculated taxes from advertised product prices rather than calculating and adding taxes to product prices.

To define the GSTINC tax code

  1. From AR/Cash, select Set up tables > Tax codes to open the Set up tax codes window.
  2. Click New.
  3. Enter GSTINC for the tax Code.
  4. Enter a Title for the GSTINC tax code.

    5. Note: Leave the Rate and GL Account fields blank.

  5. Enter the BASE_GST in the first Related Tax field.
  6. Click Save.

Which tax code to use as the default?

How you define the prices and taxes for your individual products determines which tax code you define as the default tax authority. Organizations within some countries calculate taxes for product prices and then add the taxes into the advertised price of the products; advertised product prices include any applicable taxes.

  • If your organization's policy is to include GST tax in the advertised product price (inclusive), then set GSTINC as the Tax Authority for the Default Organization on the Organization Names window (select File > System Setup, and click Organization Names).
  • If your organization's policy is to not include GST tax in the advertised product price (exclusive), then set GST as the Tax Authority defined for the Default Organization on the Organization Names window.

    • Note: An organization should be defined as using either GST or GSTINC. It is recommended that all Asia-Pacific pricing use the GSTINC model exclusively.