excise tax

Hi guys! Excise tax is paid on purchases of Tobacco and cigarettes.Currently the excise tax is included in the purchase price if purchased locally. However, if the goods are imported then it is calculated on a monthly basis. How to set up these taxes: The excise tax is calculated as follows: .05 cents/gram for tobacco $15/carton of cigarette

Not sure of the localisation, but I will assume the basics are the same. For local purchases the vendor is set up with a zero tax group, so no tax is calculated, and for import vendors they have the applicable tax, not sure if your figures can be expressed as a percentage, however this then goes into the tax tables and can be payable monthly. An alternative could be to add the taxes as item charges, but then you need to extract the monthly payable amount. Purhcasing the same item internally and export will lead to varying costs of the item. There maybe a localisation, or an add on to specifically address the needs you have here, so that maybe worth investigating.

Canadian Tax is unfortunately one of th emore complex. Basically they have BOTH sales tax AND VAT, its quite a mess actually. I think Steven, that you are in you mind thinking “Tax = VAT”, which in Canada is just unfortunately not the case. Tatiana, the principles that Steven has outlined are quite correct, but you will need to count in the Sales Tax issues and a few other things. Sorry I can’t help you more, but this is one of the ver few Canadian specialties (though its the same in Australia and NZ, so I suppose I “should” know about these things.) [:I]

So guys, how can that be set up? Does anybody here in this forun came across this? Thanks

The problem is going to be that Navision calculates Tax based on $, not Qty, so I can’t immediately see a solution.

Hi David I was aware that a difference existed, I was simply not aware what it actually was so thanks for the pointer. Tatiana, you can extrapolate my answer and see if it applies, but it probably will not, and as previously stated the tax is not calculated on quantity. In all probability you will need a modification. The only postings that will help are those with Canadian excise duty experience and that will be a very small percentage if any.