B.C. Soda Tax Configuration

This article explains the Veloce configuration required to comply with British Columbia's Provincial Sales Tax Act.

Configuration sequence

1. Create / Configure Tax Categories as explained in the article.

2. Create / Configure Taxes as explained in the articles. You may also refer to the tables below for specific settings.

3. Assign taxes to sales items, as explained in article.

Suggested Tax Categories for Veloce

British Columbia has two tiers of sales taxes. The first tier is managed at the provincial level, which includes the provincial sales tax and liquor tax. The second tier is managed at the federal level, which includes the Goods & Services Tax (GST). Therefore, it is suggested to use two Tax Categories for Veloce:

• Provincial Taxes

• Federal Tax

Required Taxes in Veloce

Provincial Taxes:

• Provincial Sales Tax (PST) - 7%

• Provincial Sales tax (PST) for liquor - 10%

Federal Taxes:

• Goods and Services Tax (GST) - 5%Detailed Tax Configurations

The following tables list all the options and settings for each tax. Refer to the article to learn how to create a new tax, and refer to the tables below for each individual setting.

Provincial Sales Tax (PST) - 7%

The provincial Sales Tax at a rate of 7% applies to sodas as explained in the article. However, if you also sell miscellaneous goods, such as clothing, bottle openers and souvenirs (e.g. souvenir glasses or pens with your company name on them), you also need to apply the 7% PST on these items. The PST may be used as an add-on tax or an inclusive tax.

Veloce Tax Settings for 7% PST

Provincial Sales Tax (PST) for liquor - 10%

The provincial Sales Tax at a rate of 10% applies to all alcoholic beverages containing more than 1% of alcohol per volume, such as beer, spirits and liqueurs, wine, mixed drinks, etc.

Settings for 10% PST (Liquor tax)

Goods and Services Tax (GST) - 5%

The federal Goods and Service Tax (GST) at a rate of 5% applies on all goods and services, including food, beverages, alcohol, clothing, souvenirs, etc. The GST may be used as an add-on tax or an inclusive tax.

Veloce Tax Settings for 5% GST