What’s Up with Those Tax Rates?
By Bill Battaglia

For most System Integrators today, the issue of taxes may be very simple, but in some areas items that are “Placed” in a house are taxed differently than those that are “Installed”. Here’s the difference: “Placed” items are those that the homeowner can take with them when they move; “Installed” items are items they cannot, or may be a little harder to remove or take because they are installed into the walls, ceilings, or floors.

As Cities, States, Provinces and Counties look for more creative ways to collect money, there may be even more Tax Rates that follow. Let’s take a look at the issue of taxes and what Tax Rates Cities, States, Provinces and Counties use today and plan on changing in the future.

What does this mean for D-Tools System Integrator? Inside System Integrator there are several Tax Rate options. First, look in the Setup International section. There is a Standard Tax Rate which only provides one Tax Rate calculated on the selling price of each item. Then there is the Canada Tax Rate which provides GST, PST and—don’t forget—a Tax Table to handle the way Canadian’s pay their Taxes.
To accommodate the above creative use of Tax Rates, we need to use the Canadian Tax Rate Tables provided by D-Tools SI.

To accomplish the examples in this article, first configure System Integrator to utilize the Canadian Tax Rate Tables. To recieve instructions on how to accomplish this, please refer to the “Setup” tab in the SI navigator.

Example 1 – Tax based on “Placed” vs. “Installed” Items In this example, “Placed” items get taxed on their selling price and “Installed” items get taxed on their Cost Price, each one at the Same Tax Rate.

Suppose there are items that you install into the walls of a dwelling. For these items, you to collect tax on the cost instead on the selling price. That means that if you install an in-wall speaker in the client’s wall you will need to collect tax on what you paid for that speaker. If the speaker was free-standing, you would collect tax on the selling price.
Tax Rate Table Configuration
1. For this example we are going to configure it for 8% on Labor, 7% on “InstalledItems and 8% on    “PlacedItems.
2. For the Labor Tax utilize the GST Tax column for the GST Only row.
3. For “InstalledTax utilize the PST Tax column for the PST Only row.
4. And for “PlacedTax utilize the PST Tax column for the Standard row.
5. See the image below for the configuration of this example:


Configuring Items Inside D-Tools SI, let’s look at an item to see how to configure it to work with the Canadian Tax Rates.
1. Open D-Tools System Integrator.
2. Navigate to the Data Database page.
3. Select an Item that will be “Installed” into the dwelling.
4. For my example I am selecting a Speaker Rough-In Bracket. This Item will be installed in the Pre Wire Phase of the project which means we need to collect Tax on the Cost.
5. Once you have opened that Item click to the Price tab section.
6. Select “P” for Purchase Tax Code and “G” for Labor Sales Tax.


7. After making these modifications select the [OK] button.
Reporting Now let’s see how these are represented in the D-Tools SI Reports. For this example I will be starting a New Project.

1. Go to Projects New page in the SI Navigator.
2. Start a New Project and open it in Text version.


3. Let’s confirm that the Tax Rates are correct.
4. Off the D-Tools menu select Options. Then go to the General tab.


5. Modify these as needed, otherwise close this window.
6. Next, add that Item we adjusted the Tax above.


7. Run a Line Item List Price Report.
8. Page 1


9. Page 2


10. Because we selected the Canada option, it displays GST Tax and PST Tax.
11. Here you will need to change the Labels to Labor Tax and Sales Tax.


12. To make the modifications to these reports you will need Crystal Reports.
Example 2 – Tax based on Selling Price Another new Tax Rate is where there are different Tax Rates based on the selling price. For example all items over $6,000 will be Tax Rate “A” and all items under $6,000 will be Tax Rate “B”.
Tax Rate Table Configuration
1.  For this example we are going to configure it for 8% on Items Under and 6% on Items Over.
2.  For Items Over Tax utilize the PST Tax column for the PST Only row.
3.  And for Items Under Tax utilize the PST Tax column for the Standard row.
4.  See the image below for the configuration of this example:


Configuring Items Inside D-Tools SI let’s look configure an item to work with the Canadian Tax Rates shown above.
1. Open D-Tools System Integrator.
2. Navigate to the Data Database page.
3. Select an Item that is are Over $6,000.
4. For my example I am selecting Plasma. This item is over the $6,000 limit which means we need to collect Tax on the Tax Over.
5. Once you have opened that Item click to the Price tab section.
6. Select “P” for Sales Tax for all Under Tax Items select “S”.


7.            After making these modifications select the [OK] button.
Reporting Now let’s see how these are represented in the D-Tools SI Reports. For this example I will be starting a New Project.

1. Go to Projects New page in the SI Navigator.
2. Start a New Project and open it in Text version.


3. Let’s confirm that the Tax Rates are correct.
4. Off the D-Tools menu select Options. Then go to the General tab.


5. Modify these as needed, otherwise close this window.
6.  Next, add that Item we adjusted the Tax above.


7.            Run a Line Item List Price Report.
8.            Page 1


9.            Page 2


10.        Because we selected the Canada option it displays GST Tax and PST Tax.
11.        Here you will need to change the Labels to Labor Tax and Sales Tax.


12.        To make these modifications to these Reports you will need Crystal Reports.