Streamlined tax solution workflow

The Taxes application offers several tax solutions to fit your business needs. You can set a tax solution at the company level, and you can also set a different tax solution for each entity. An entity can only have one tax solution.

The following tax solutions can be used in the Taxes application for both single and multi-entity companies:

  • Standard tax solution for VAT and GST

  • Streamlined tax solution for VAT and GST

  • Custom tax solution for VAT and GST

  • No Tax

  • Simple Tax

  • Advanced Tax

  • Avalara AvaTax for sales and use tax

The tax solution that you select determines the type of tax submission process and tax reporting process you use.

About

This workflow shows how a streamlined VAT or GST tax solution supports tax calculation, tax record creation, and tax reporting. Unlike standard tax solutions, streamlined tax solutions only include pre-configured tax objects for tax details and tax schedules. You must create and maintain the other tax objects required for your business and jurisdiction, including tax schedule maps, item tax groups, and contact tax groups. These tax objects work together to calculate tax on transactions and create tax records that can be used for reporting and reconciliation activities.

This workflow covers the relation between tax solution, tax submission, and tax reporting. It applies to companies or entities that use the following streamlined tax solutions:

  • Canadian Sales Tax - SYS

  • New Zealand GST - SYS (Early Adopter)

  • Singapore GST - SYS (Early Adopter)

The streamlined Canadian Sales Tax solution integrates with Sage Regulatory Reporting for the purposes of tax submission. The New Zealand and Singapore streamlined tax solutions use the user-submitted tax submission process.

If you use one of our standard tax solutions, see Standard tax solution workflow. If you use a custom tax solution, see Custom tax solution workflow.

For companies and entities that need to calculate sales and use tax, see Sales and use tax overview.

Before you begin

Before using this workflow:

Workflow

When you configure an entity with a streamlined tax solution, Sage Intacct automatically creates preconfigured tax details and tax schedules for the selected jurisdiction. You must create additional tax schedule maps, item tax groups, and contact tax groups. These tax objects work together to calculate tax on transactions. The resulting tax records can be used to create tax submissions using the user-submitted workflow, and to generate tax reports and custom reports for analysis and reconciliation.

  • Create transactions in the supported applications.

  • Sage Intacct applies the tax configuration defined by the streamlined tax solution.

  • Tax details and calculated tax amounts are recorded and stored as tax records.

  • These tax records become the source data for tax submissions and tax reporting processes.

  • Close the books for the reporting period.

  • Create a tax submission in the Taxes application.

  • When you start a submission, the included transactions are locked to prevent changes that could affect the submission.

  • Sage Intacct prepares the source tax data and sends it to Sage Regulatory Reporting for processing.

  • Sage Regulatory Reporting prepares the tax return for the selected jurisdiction.

  • Generate the GST34-2 report for external manual submission.

  • After you've submitted your taxes, mark the submission as filed in Intacct to close the submission and unlock the tax records.

  • Create a tax detail box report that reflects the tax detail boxes for your tax jurisdiction.

  • Close the books for the reporting period.

  • Create a user-submitted tax submission in the Taxes application. The tax records in the submission period are locked and your tax submission appears on the Tax submission list page.

  • Run your customized tax detail box report to confirm your tax return totals.

  • Prepare and submit tax returns using your organization's external tax submission process and tools, as required by your tax jurisdiction.

  • Mark your user-submitted tax submission as filed to close the submission, unlock the tax records, and mark them as filed.

  • Use the custom reports provided for supported streamlined tax solutions to review tax activity and tax liabilities.

  • Create a tax detail box report that reflects the tax detail boxes for your tax jurisdiction.

  • Use reports to support reconciliation and tax review activities.

Regional availability

Streamlined tax solutions are generally available in the following regions:

  • Canada

  • New Zealand (Early Adopter)

  • Singapore (Early Adopter)