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VCTV

Canada VCTV examples

Example 1 - Transaction put on hold
Example 1 details
Field
Description
Invoice gross amount
CAD 100.00
Vendor charged tax
CAD 4.00
GST tax rate
5%
PST tax rate
7%
Determination calculated GST
CAD 5.00
Determination calculated PST
CAD 7.00
Total tax due
CAD 12.00
Configured undercharge accrual method
Accrue variance
The invoice goods were purchased in Vancouver, British Columbia.
The transaction gets put on hold. The VCT amount (CAD 4.00) is less than the GST amount (CAD 5.00). Even though the configured accrual method for undercharges is Accrue Variance, no PST amount's accrued because the vendor insufficiently charged the GST amount.
Example 2 - VCT more than Canada GST amount but less than the total tax due
Example 2 details
Field
Description
Invoice gross amount
CAD 1,000
Vendor charged tax
CAD 110
GST tax rate
5%
PST tax rate
7%
Determination calculated GST
CAD 50
Determination calculated PST
CAD 70
Total tax due
CAD 120
Configured undercharge accrual method
Accrue variance
The invoice goods were purchased in Vancouver, British Columbia.
The VCT amount (CAD 110.00) is more than the GST amount but less than the total tax due (CAD 120.00). Determination calculates the undercharged amount and accrues CAD 10.00. The accrued amount's prorated to the taxing authority for the province of British Columbia.

This article applies to:

  • PRODUCT: ONESOURCE Determination, ONESOURCE Indirect Tax