Overview
You can manage Canadian companies with the CAN legislation code and leverage much of the North American legislation functionality.
The processes and workflows for Canadian and American companies are the same in principle. In addition to basic settings like legislation and activity code, Canadian companies have their own tax codes, their own tax determination, and their own federal GST-34 return functionality.
Key elements
The Canadian legislation pack includes several key elements broken down as described below.
Basic settings include dedicated legislation and activity codes and updated geographic subdivisions.
The organizational structure includes a Canadian chart of accounts, account classes, general ledger, and account core model.
For VAT related settings, the legislation pack includes a revised BP tax rule, tax determination, tax codes, and tax levels for provincial tax. It also includes a predefined list of Tax UIDs that are mapped to the VAT boxes. The list is managed by the Sage Compliance Service to ensure accurate online submissions. If needed, you can modify the IDs, but it is not required.
For GST reporting, you can take advantage of the VAT framework that includes a VAT box setup and a VAT form based on the VAT box structure of the Non-personalized worksheet for the Goods and Services Tax of the Canadian Revenue agency (GST-34). You can generate the GST return working copy as a PDF to submit manually or you can generate the NETFILE to submit directly from Sage X3
The VAT framework includes dedicated functions designed to facilitate calculating and validating VAT returns but does not include direct submission from Sage X3. For specific legislations, as noted in the table below, there is a preset structure for VAT boxes and tax file generation that conforms to the respective tax laws. There is also a generic VAT declaration that can be customized for legislations not part of the framework.
Within the VAT framework, the company legislation and the VAT declaration process are separate.