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Set Tax Rates for Out-of-Province Clients

Introduction

In Canada, Federal Sales & Goods Taxes (GST/HST) charged to clients are based on Client’s Address, not the Firm’s Address. For province taxes (PST), unless law firm is registered to collect PST in the client’s province, PST is not charged to the client.

Examples:

  • If an Ontario firm is providing services to a British Columbia client, they would charge 5% of GST and 0% of PST.
  • If a British Columbia firm is providing services to an Ontario client, they would charge 13% of HST and 0% of PST.

You can learn more about tax collection requirements at following reference articles:

How to set up different tax rate 

In CosmoLex, to charge a different tax rate to a particular matter, you will need to override the global setting for the individual matter.

  • Matter > Edit > Advanced Settings > Tax tab > check “Localized Tax Rate” > Rate button > Change Rate
  • When done, click Save

Example

Original Tax Settings for a British Columbia Firm

 

New Tax Settings on a Matter when British Columbia Firm is serving an Ontario Client

Updated on May 31, 2018

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