Sales tax in Canada

Tax rates have been loaded for organisations that are set up with Canada as their country. Tax rates with a Provincial Sales Tax (PST) component, treat the PST amount as non-recoverable.

Default tax rates

You can delete any default tax rate that you don't need. You can't recover a deleted rate, but you can create a new customised one.

You can add custom rates to account for exemptions and to comply with provincial requirements. You can also customise tax rates to be non-recoverable.

RegionNamePST/RST/QSTTotal (including 5% GST)
AlbertaAB - GST on Purchases 5%
AB - GST on Sales
British ColumbiaBC - GST/PST on Purchases7% non-recoverable12%
BC - GST/PST on Sales7%
ManitobaMB - GST/RST on Purchases8% non-recoverable13%
MB - GST/RST on Sales8%
New BrunswickNB - HST on Purchases 15%
NB - HST on Sales
Newfoundland and LabradorNL - HST on Purchases 15%
NL - HST on Sales
Northwest TerritoriesNT - GST on Purchases 5%
NT - GST on Sales
Nova ScotiaNS - HST on Purchases 15%
NS - HST on Sales
NunavitNU - GST on Purchases 5%
NU - GST on Sales
OntarioON - HST on Purchases 13%
ON - HST on Sales
Prince Edward IslandPE - HST on Purchases 15%
PE - HST on Sales
QuebecQC - GST/QST on Purchases9.975%14.975%
QC - GST/QST on Sales
SaskatchewanSK - GST/PST on Purchases6% non-recoverable11%
SK - GST/PST on Sales6%
YukonYT - GST on Purchases 5%
YT - GST on Sales

If you have an existing Canadian organisation and want to use the default rates, go to Settings > General Settings > Tax Rates and click Add Canadian Tax Rates.

Select the tax rate that applies to each line item

When you create a transaction that is tax exclusive or tax inclusive, you can select the tax rate that applies to each line item according to your province's tax rates.

List of default tax rates for Canada able to be selected in bill

The amount of tax applied will be shown once the transaction has been approved. If you have selected a tax rate that has a PST component the total PST will be visible on the approved bill.

PST is treated as non-recoverable and won’t appear on the Sales Tax Summary or the Sales Tax Audit Report.
Showing total PST and total GST on an approved bill