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Tax calculation and setup in LS Central for North America is customized to follow the specific tax rules of each country, United States, Canada, and Mexico. Tax application is made accurately by the system based on customer, store location, and types of product or service by using pre-defined tax rules and configurations.
United States
In the U.S., sales tax is determined at multiple levels, state, county, and city. Tax calculations rely on tax areas, tax groups, and tax jurisdictions designed to comply with local tax laws, which may differ across each location.
Canada
Canada employs both federal and provincial taxes. LS Central accommodates the three primary types:
- GST (Goods and Services Tax) – A federal tax applied to most goods and services.
- PST (Provincial Sales Tax) – A provincial tax applied in some provinces separately from GST.
- HST (Harmonized Sales Tax) – A combined federal and provincial tax in certain provinces.
Each province determines whether it applies GST only, PST separately, or HST as a single combined rate.
Mexico
In Mexico, the primary tax is:
- IVA (Value Added Tax): Tax on value added that is levied nationally on the majority of commodities and services.
IVA tax rules can be configured by LS Central, including tax-free items or services where necessary. Tax is calculated in accordance with Mexican tax laws based on product type and transaction data.