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.
|Region||Name||PST/RST/QST||Total (including 5% GST)|
|Alberta||AB - GST on Purchases||5%|
|AB - GST on Sales|
|British Columbia||BC - GST/PST on Purchases||7% non-recoverable||12%|
|BC - GST/PST on Sales||7%|
|Manitoba||MB - GST/RST on Purchases||8% non-recoverable||13%|
|MB - GST/RST on Sales||8%|
|New Brunswick||NB - HST on Purchases||15%|
|NB - HST on Sales|
|Newfoundland and Labrador||NL - HST on Purchases||15%|
|NL - HST on Sales|
|Northwest Territories||NT - GST on Purchases||5%|
|NT - GST on Sales|
|Nova Scotia||NS - HST on Purchases||15%|
|NS - HST on Sales|
|Nunavit||NU - GST on Purchases||5%|
|NU - GST on Sales|
|Ontario||ON - HST on Purchases||13%|
|ON - HST on Sales|
|Prince Edward Island||PE - HST on Purchases||15%|
|PE - HST on Sales|
|Quebec||QC - GST/QST on Purchases||9.975%||14.975%|
|QC - GST/QST on Sales|
|Saskatchewan||SK - GST/PST on Purchases||6% non-recoverable||11%|
|SK - GST/PST on Sales||6%|
|Yukon||YT - 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.
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.