GST (5%) and PST (7.5%)

I think that a reading of the Peachtree manual would help here. What you need to do is to set up the "Tax Authorities" and the " Tax Codes" just as the manual describes, with Tax codes for GST+PST, and finally, Exempt, applying the tax authorities accordingly. Apply the tax codes to the customer records, and change them as might be occasionally required on the invoice. With the appropriate GL codes configured, then you don't have any further problems. You would pay your sales taxes according to your month/period end trial balance amounts.

The only deficiency is that your invoiced taxes aren't disclosed separately, but lumped together as a total. If you have customers that require sales taxes to be shown separately, then set the sales taxes up in inventory as non-stocking items, with the price being the tax rate, and the quantity on an invoice as the accumulated amount of the invoice before the taxes are applied.

Most Canadian Peachtree users with whom I'm in touch use the native Peachtree "Tax Authorities" and the " Tax Codes", and I've never heard of any complaints from them about sales tax auditors complaining.

charging the second taxes on the total amount of the invoice that included the first taxe?

The software is : Peachtree First Accounting 2008. It is the basic version.

1. You must calculates GST (5%)
2. add it to the selling price,
3. then applies the QST (7.5%) to the GST and selling price.

->1. You must calculates GST (5%)

->2. add it to the selling price,

->3. then applies the QST (7.5%) to the GST and selling price.

Effectively, your PST rate is then 0.07875 on the base price plus GST

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Alexandra,

The effective PST rate is then 7.875% (based on 7.5% of 100 + 5). If you enter that as the rate instead of 7.5% the PST will be calculated correctly (for Quebec tax on tax). However if PeachTree prints the rate of 7.875% on the invoice it will confuse the customer.

In BS1 Accounting (a free program,