Add customised tax rates for Canadian organisations

Add your own tax rate if your organisation needs more options than the default rates available to organisations based in Canada. Your tax rates can apply to sales, purchases, or both and can be recoverable or non-recoverable.

Consult your accountant or bookkeeper to make sure you set up and apply the right tax rates for your organisation.

Add a recoverable or non-recoverable tax rate

You'll need to set up tax rates with one or two components, depending on the province.

  1. On the Settings menu, select General Settings.
  2. Under the Organisation heading, click Tax Rates.
  3. Click New Tax Rate.
  4. Enter a Tax Rate Display Name.
  5. Add the Tax Components depending on the province where your organisation is based.
  6. (Optional) If your tax component is Non-recoverable select the checkbox.
  7. Click Save.

Tax Components

Where a province has GST-only or HST, add a tax rate with one component.

Image of GST with one component.

Where a province uses PST, RST or QST, add a tax rate with two components. If the second component is non-recoverable select the Non-recoverable checkbox so that it won’t appear on the Sales Tax Summary or the Sales Tax Audit Report.

Don't select the Compound radio button.

Image of GST and RST with two components.

Add tax rate for zero-rated sales outside Canada

If you sell to customers outside Canada, add a tax rate for zero-rated sales. Use this, rather than a tax-exempt tax rate, so the sales appear on your sales tax return.

Image showing new tax rate zero rated.

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