Posts Tagged ‘hst pos’

Here are 7 things you must know about the HST tax changeover as an AmberPOS client.

1. Make Sure You Are Running AmberPOS V.3.10.6.24 or Later – If you are an AmberPOS customer who is on our annual support program, your software should have already been upgraded to version 3.10.6.24 or later.  Please check your the software version of your AmberPOS software to ensure you are running this version or later.  You can see the version number at the bottom right hand corner of your home page screen of the AmberPOS software.
2. AmberPOS will Automatically Rollover Changes on July 1st, 2010 – When you load up your AmberPOS software on July 1st, an automatic script will run and update your software for you.  There will be a prompt asking you to confirm that it is OK to do this.  Unless there is a specific reason why you do not want your software automatically adjusted for HST, please make sure you or your staff click YES, otherwise your software will NOT be setup for HST properly.
3. Tax1 Name and Rate Will Change From GST to HST – Your Tax1 field will be renamed from GST to HST, and the tax rate in BC will be changed from 5% to 12%.
4. Tax2 Rate Will Change For PST – The name for Tax2 will remain as PST, but the tax rate itself will be changed from 7% to 0%.
5. Tax3 Will Be Added – A new tax called “HST Rebate” will be added, and set to -7%.  This tax rate will be used for items that qualify for an HST Rebate.
6. PST Exempt Items Will Be Updated – All PST Exempt items currently in your database will be changed flagged with the HST Rebate tax.  This means that they will be charged HST at 12% as well as HST Rebate at -7% effectively reducing the total tax paid to 5%.
7. Some PST Exempt Items Will Need Manual Adjustment – Please note that while the majority of your current PST exempt items will automatically become HST exempt (flagged with Tax3), you must go through your inventory items and remove HST exemption status from any non-exempt items which were previously PST exempt. For example, if you had an inventory item for “Consulting” or any services related items which were previously PST exempt, those items must now be manually adjusted to charge HST but NOT to offer the HST rebate.

Please note that if you are not currently a customer on our annual support/upgrades program, or your software has not been upgraded to version 3.10.6.24 or later, you will need to make the above adjustments manually.

If you have any further questions, please contact our support line at 778-285-2855.

Related Articles: Is Your POS Software HST Ready?

Is your POS software HST ready?

New changes for HST (Harmonized Sales Tax) are coming into effect on July 1st, 2010 in British Columbia, but the HST changes affect retailers in all provinces across Canada, not just BC retailers.  Many retailers running computerized point of sale systems are wondering if their POS software will be able to handle the new dynamic HST tax structure.

There are a few challenges involved in making HST work with POS software and AmberPOS is ready to handle all the HST changes automatically.

Province Specific HST Tax Rates

The first challenge with the new HST tax is that it is a dynamic tax that is customer location specific.  Meaning, the new HST tax rates will be different for people located in different provinces.

For example, if you are a retailer located in BC, when you sell something to a customer who resides in BC, you will have to charge them 12% for HST.  However, when you are selling something to a customer in Ontario, you will have to charge them 13% for HST.  To make things even more complicated, if you’re selling to a customer in Alberta, you will have to charge them 5% HST.

In this way, HST is a dynamic tax that is dependent on the location of the customer, not just the retailer.  Meaning, HST is not based on just one single rate, but on a different rate for each province.

Even provinces which are not switching to the new HST system will have to charge HST to customers in provinces which do have HST.  For example, a retailer in Alberta will have to charge HST to their BC customers.  This is especially important for retailers with online web stores that ship product outside of their province.

AmberPOS is fully ready for the new HST changes coming into effect and our software automatically calculates the proper HST to charge your customers, so that you and your staff don’t have to worry about making that decision manually at each transaction.  This speeds up client processing and eliminates undercharging/overcharging clients by taking the decision away from the hands of the clerk who may not fully understand HST rules.

Point-of-Sale (POS) Rebates for British Columbia HST

In addition to province-specific HST tax rates, your POS software also has to take into effect Point of Sale Rebates for HST.

What is a point-of-sale HST rebate?

Point of sale rebates are similar to PST exemptions under the current tax system.  Certain items (such as the ones listed below) will get an instant rebate during checkout which will reduce the amount of HST payable by the purchaser by the 7% (in BC) provincial portion of the HST.  This means that on items such as books, purchasers will only pay 5% HST.

Which items have point of sale HST rebates?

POS rebates for HST will apply to certain designated items such as:

• motor fuels
• books
• children’s clothing
• children’s footwear
• children’s diapers
• children’s car seats and car booster seatsfeminine hygiene products

AmberPOS point of sale software will allow you to provide HST POS rebates for such items automatically so there is no memorization required for your staff members.

HST Related Resources

• Place of Supply Rules for HST
• GST / HST Info Sheets
• GST / HST Notices
• HST Publications

Is it time to upgrade your POS software?

Automatic integrating of features such as HST compatibility is just one example of the benefits of running our state-of-the-art AmberPOS software.

AmberPOS is constantly being updated and improved based on the feedback we receive from our retail customers, and based on the ever increasing demands of the retail industry.  By choosing AmberPOS, you are partnering with a world-class Point of Sale software provider who understands your needs.

If you have any questions about HST and point of sale systems, or to book a free demo and consultation to see if AmberPOS is right for your business, please contact us today.

Click Here to Book a Free Demo