Guide on Setup, Add/Remove Sales Taxes in Sage 50

The business that you do sales taxes are charged according to the requirements of your company and the area. To know more deeply about the sales tax in Sage 50 accounting you have to go through this article.

So what are you waiting for. With the help of this article you will deeply understand the setting up sales tax, add/remove sales tax, sales tax amount not showing and sales tax not calculating into Sage 50 accounting program.

Setting Up Sales Taxes In Sage 50: A Step-By-Step Guide

A step-by-step tips or guide to setting up sales tax into Sage 50 accounting program U.S or Canada edition.

Step 1: Setup the Taxes

• First of all select Setup then Settings
• After that choose Company
• There after select Sales Taxes, then Taxes.
  • All fields should be filled out according to how they apply to your business or location.
  • If your company conducts business in multiple provinces and you require unique reports for each province:
    • Create distinct taxes for every jurisdiction, such as PST BC (for PST British Columbia) and PST SK (for PST Saskatchewan).
• Select your tax Paid on Purchases to account for Acct to track tax paid on purchases.
• Select your tax Charged on the Sales account in order for your account to track sales tax.
• If you want Sage 50 CA to produce tax reports, check the box for the tax report and click OK.

Step 2: Setup the Tax Codes

• First off all you have to select Setup then Settings
• After that choose Company
• There after select Sales Taxes, and Tax Codes.
• Then you have to select the Code Column.
• For each code, you have to enter up to two letters.
  • For example, G is for GST, GI is for GST included, and GP is for GST and PST.
• You have to double-click on the Code or open the Tax Code Details window.
• Then you have to double-click and select the appropriate tax, under the Tax Column.
• Make sure your status is correct.
  • Taxable: In case you want the tax calculated and charged.
  • Non-taxable: It is when you want no tax calculated, but amounts reported.
  • Exempt: In case you don’t want tax calculated, but amounts reported.
• In the Rate column, you have to enter the rate of your tax without percent.
• On top of the current price if you want to charge that is Included in price should be No.
• GST or HST should be set to Refundable in case you want to track the tax in its own account.
• To save your selections you have to select Ok.
• To close you have to select OK.

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A Step-by-step Guide to Add or Remove a Sales Tax into Sage 50

 In this section, we’ll be taking a look at how you can add or remove a sales tax into Sage 50.

To add a sales tax

• First, you have to go into the Home window
• Then you have to go on the Setup menu
• After that select Settings.
• There after you have to click Company >> Sales taxes, and then you have to click on Taxes.
• In the tax column, you have to type the name of the tax on a new line.
• After that, you have to type a tax ID, for example, your Canada Revenue Agency (CRA) Account Number, that you are needed to include on invoices and other forms that use this tax.
• From this tax change the Exempt? Click the Yes option if your company doesn’t pay this tax on purchases
• Change the Is this tax taxable? If this tax is subjected to other taxes then you have to click Yes.
  • In the Taxable Tax List window, you have to select the Charge on the column for taxes that are applied to this tax and then you have to click OK.
• Click Find to choose the Account to track tax paid on purchases in case your company is not exempt from this tax.
• To select the Acct. to track tax charged on sales you have to click Find.
• Then you have to change the Report on taxes option to Yes (click it) if you want to include this tax in the Tax Report and then click Ok.

When you create a new tax code for this new tax you have to enter the new sales tax rate.

To remove a sales tax

• Begin by selecting Setting on the Setup menu in the Home window. Then you have to click Company, Sales taxes, and then click on Tax Codes.
• Then you have to open any codes that tax belongs to, then you have to select tax, then click on the Edit menu and then you have to select Remove Line and then you have to click OK.
• In the navigation pane of the Settings window, you have to click on Taxes.
• After that in any Taxable Tax Lists, you have to clear the tax from the Charged on the column and then click on OK.
• In the Tax column, you have to select the tax, then open the Edit menu and then you have to select Remove Line and then click OK.

Why Sage 50 Sales Tax Amount Not Showing on the Invoice Screen

 In this section, we’ll explore what might be causing your invoice screen to not display the sales tax amount in Sage 50 and how you can fix it.

Cause Sage 50 Sales Tax Amount Not Showing on the Invoice Screen

• The price already includes the taxes.
• The tax setting for the customer or vendor record is exempt Yes.
• The tax on the inventory or service record is set up as exempt.
• When inventory is not being used, line item totals are entered in Price instead of Amount.

Tips to Troubleshooting the Sage 50 Sales Tax Amount Not Showing On The Invoice Screen

Section 1: Taxes are included in the price

• The tax amount will not display on the sales invoice screen when the sales tax code includes the sales taxes included in the price.
  • You can check that the tax amounts are going to the right accounts while viewing the sales/purchase invoice by pressing Ctrl + J to view the journal entry.

Section 2: Customer/ Vendor record has tax exempt on Yes

• First, you have to go to the Customer/ Vendor record
• Switch Yes to No under Tax Exempt under the Taxes tab
• Then you have to click Save and Close

Section 3: Inventory or service record has tax exempt on Yes

• First, you have to go to the Inventory/ Service record
• Then you have to click Yes to No under Tax Exempt which is under the Taxes tab
• At last, you have to click Save and then Close.

Section 4: No Tax Code Assigned to the Customer/Vendor

• Begin by going to the Customer/Vendor record
• You can select the Taxes tab
• From Choose the Code you have to select a tax code and open the drop-down list.
• Then click Save and Close.

Section 5: Price Being Entered Instead of Amount

• Enter the total for the line item into the Amount field rather than the Price field if you are not using inventory items.
• The sales tax amount will calculate after leaving the Amount field by pressing TAB or by choosing a different field.

Section 6: Taxes option is set to exempt no

• First, you have to go to Setup and then click Settings,
• Then you have to click Company, Sales taxes, tax codes.
• Verify that Exempt from this tax: No

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Tips to Fix Sage 50 Sales Tax Not Calculating

Are you having issues with Sage 50 Sales tax not calculating correctly? Don’t worry, This section provides solutions to help get your sales tax calculations back on track.

Method 1:

• You have to go to Setup and then go to Settings
• Then you have to select Company, Sales, Tax, Tax Codes
• After that, you have to select the code that you want to change
  • You have to click on the magnifying glass or you can double-click in the fields of Code or Description to bring up the tax code detail.
  • In the field verify the rate and then update if needed. Make sure that GST/HST is set to Refundable
• Then you have to select OK.
• Now you have to close the setting and then check that Tax now calculates.

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