In Canada, the sales taxes you charge depend on your province and what you sell:
- GST is the federal goods and services tax.
- HST is a single harmonized tax that replaces GST and the provincial tax in the provinces that use it.
- PST is a provincial sales tax, charged alongside GST in the provinces that have one. Quebec has its own, the QST.
Which ones you must register for, the rates, and which of your products and services they apply to are set by the Canada Revenue Agency and your province, and they change from time to time. Check with them, or with your accountant, before you start charging. This guide covers how to set up the taxes you're registered for in IAPZ.
1. Add your taxes
Open Settings, then Taxes, and add each tax you're registered for, with its rate: for example, in British Columbia, GST 5% and PST 7%. Add each tax's registration number too, such as your GST/HST number; it's printed on your invoices.
When a rate changes, archive the old tax and add the new one, so past sales keep the rate they were charged.
2. Say which items are taxed
Each item carries the taxes it's charged. A new item starts with all your taxes ticked; untick any that don't apply, such as PST on something exempt. To change many items at once, use Change many items at once on the items list (see Items).
3. Sell as usual
Every sale, at the counter or on an invoice, charges each line's taxes and shows each tax separately on the receipt and the invoice. On a sale you can still untick a tax on a line when it doesn't apply that time.
4. Your totals for filing
Summary, in Sales, shows your sales for the dates you choose with the amount before tax, the tax, and the total, so the figures for your return are in one place. How and when to file is a question for your accountant or the Canada Revenue Agency.
More: Recording sales and Invoices.