Sage Billing Boss is HST ready

Effective July 1st, 2010, companies conducting business in Ontario and British Columbia need to begin charging the Harmonized Sales Tax ("HST") on sales, and paying the HST on purchases instead of GST and PST. Between May 1 - June 30, 2010, there will be a transition period for the HST where businesses may be required to charge GST, PST and/or HST depending on the service. Sage Billing Boss has been updated to support the HST calculation both during the transition phase as well as after the transition phase so that business likes yourself can continue to grow and succeed. To learn more about the HST or how Sage Billing Boss can help you manage the HST calculations, please explore the links below.

HST FAQ
Managing the HST in Sage Billing Boss between May 1-June 30, 2010
Managing the HST in Sage Billing Boss after July 1, 2010
Managing the HST at the line item in Sage Billing Boss
Government Links about the HST

Q: What is the HST?
A: HST stands for Harmonized Sales Tax. This is a single harmonized value-added tax that will replace GST and PST in British Columbia and Ontario on July 1, 2010. The HST will apply at a rate of 12 per cent in British Columbia and 13% in Ontario to those goods and services that are subject to GST. The PST will be eliminated and a 7 per cent or 8 percent provincial rate will be added to the 5 per cent (based on province.) This combined tax will be called the HST. Q: When will the HST be in effect?
A: The HST will be effective as of July 1, 2010. During the period of May 1- June 31, 2010 there will be a transition period where the business may be required to charge the PST, GST and HST depending on the product/service that is being sold. Please consult your accountant/bookkeeper or review the government of canada site for more information on the transition period and how to assess the appropriate tax Q: Do I have to implement the HST?
A: The HST is mandatory for all residents and businesses doing business in the province of British Columbia and Ontario Q: Will Sage Billing Boss automatically manage the HST requirements?
A: Sage Billing Boss will only help manage the calculation of the tax - it will not classify or identify which products/services require a GST/PST or HST assessment during the transition period. As the business owner you will be responsible for identifying the appropriate tax rate applicable to your products/services Q: Can I break out the services by line item and tax classification in Sage Billing Boss?
A: Sage Billing Boss will allow you to identify which taxes will apply to a line item and perform the tax calculation at the item level Q: Is there an area on the invoice where I will be able to display my HST number?
A: Yes you can display your HST number in the section "default message to be used on invoices"

During the HST transition period, you may be required to charge a GST, PST and HST amount depending on the product/service that you are invoicing for. Setting this up in Sage Billing Boss is quick and easy.

Click on the Setting tab
Select Taxes
Label Tax 1 as GST and enter the GST applicable rate
Label Tax 2 as PST and enter the PST applicable rate
Label Tax 3 as HST and enter the HST applicable rate

These will be your default tax rates that will be displayed at the line item when you create an invoice in Sage Billing Boss. If you need to change the HST amount to be charged (depending on what the product/service is and whether they are tax exempt eg. childrens clothes) you can manage the HST amount to be charged at the line item when you create the invoice (see Managing HST at the line item)

Setting up HST in Sage Billing Boss Setting up HST in Sage Billing Boss is fairly simple and straightforward:

Click on the Setting tab
Select Taxes
Choose one of the Tax fields and name it HST and enter the rate

This will be the default HST rate to be charged at the line item. If you need to change the HST amount to be charged (depending on what the product/service is and whether they are tax exempt eg. childrens clothes) you can manage the HST amount to be charged at the line item when you create the invoice (see Managing HST at the line item).

Depending on the product/service that you are selling you may choose to charge a portion of the HST to your customer (eg. for those services that are eligible for a rebate). By default, Sage Billing Boss will display the HST rate that you setup in the taxes section under Settings. In order to modify the HST taxable amount, simply create your invoice, fill in the line items as normal and click on the "custom taxes" icon (looks like a pencil). A pop up screen will be appear displaying the default tax rates already created. Simply select the HST tax, click on "custom rate" and enter the percentage of tax that you want to be applied to the line item. Click on Save and the Sage Billing Boss will calculate the tax for that particular line item. Once that is done, simply finish creating your invoice as normal and Sage Billing Boss will complete the tax totals for you.