How to set up the combined HST rate function in GTD Premise

We've added a function to GTD Premise that produces combined HST rates at the provincial level for transactions that take place in certain Canadian provinces.

Canada requires a single combined Harmonized Sales Tax (HST) rate in the 5 HST provinces. In the past, GTD Premise customers were required to redirect transactions for these provinces to artificial HST countries in order to produce the combined tax rate. This function produces combined HST rates for the actual provinces, so you no longer need to rely on custom rules.

Now that HST rates are a standard function in GTD, we plan to end support for the artificial HST countries. To ensure that your Canadian tax calculations remain accurate, you should set up combined HST rates for your organization by September 30, 2024.

Update your system

In order to access combined HST rates, you must update your GTD Premise to the newest version.

Turn on combined HST rates

  1. Log in to Global Tax Determination.
  2. Click Manage. This brings you to the View/Edit Organization Details page.
  3. In Step 4, click on the Combined HST Rate dropdown menu and select Yes.
  4. Click Save.

After you turn on combined HST rates for your organization, any new organization you add to GTD will automatically have combined HST rates turned on. Child organizations added to an existing parent will inherit this setting from the parent.

Update or delete data editor rules

This section only applies to organizations that use data editor rules to redirect transactions to the artificial HST countries. If your organization does not use data editor rules, skip to the next section.

With combined HST rates turned on, data editor rules for HST calculation are no longer necessary. You can either update the rules with an end date or delete the rules entirely.

Update data editor rules

  1. Search for a rule in the Data Editor and find it in the list of search results.
  2. Click the Edit icon, which looks like a pencil and paper.
  3. Edit
  4. Click Save.
  5. Repeat steps 1-4 for all data editor rules related to artificial HST countries.

Delete data editor rules

  1. Search for a rule in the Data Editor and find it in the list of search results.
  2. Click the Delete icon, which looks like a red X.
  3. Click Delete.
  4. Click OK to confirm that you want to delete the rule.
  5. Repeat steps 1-4 for all data editor rules related to artificial HST countries.

You can't delete data editor rules that have been used to modify data associated with audited transactions.

Update your settings

Any configurations that use the artificial HST countries must be updated with the actual HST provinces. This may include:

  • Business parties (customer, vendor, and/or third-party)
  • Entity/Use codes
  • Exemption certificates
  • Geo codes (if not using data editor rules)

Check your Canada nexus

Make sure that your organization has nexus set up in Canada in the Manage Tax Obligation page. Since all 5 HST provinces inherit their registration statuses from Canada, you only need to make sure that Have Tax Obligation and Active are selected for Canada.