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How to set up GST, HST, PST, or QST

Created on  | Last modified on 

Summary

How to enable sales tax in Sage Accounting.

Description

  • Select the sales taxes that are applicable to your business
  • Enter your tax registration numbers
  • Enable tax rate selections in transactions
  • Manage sales tax rates
  • Set up for sales tax installment payments or ITCs/ITRs

NOTE:

This article is for sales tax only. For fees, such as interest or fuel tax, see the article How to add percentage-based fees to invoices.

 

Resolution

Go to Settings, Business settings, Sales taxes.

▼Tax names

GST is a federal tax on Canadian goods and services and is part of Harmonized Sales Tax (HST) in applicable provinces. It applies in New Brunswick, Ontario, Prince Edward Island, and Newfoundland and Labrador.

Provincial Sales Tax (PST)

PST applies in British Columbia, Saskatchewan, and Manitoba as RST.

Harmonized Sales Tax (HST)

HST combines GST and PST before remittance to the Canada Revenue Agency (CRA). It applies in New Brunswick, Ontario, Prince Edward Island, and Newfoundland and Labrador.

Québec Sales Tax (QST)

QST applies in Québec and replaces HST or PST in other provinces. Revenu Québec administers QST.

NOTE:

Alberta, Nunavut and Yukon, and the Northwest Territories collect only GST.

Preparing for tax type setup

Businesses must comply with place-of-supply rules and eligibility requirements. If selling across Canada, ensure all necessary registrations are complete and tax numbers are available before setup. Registered tax types appear in selection lists for sales and expense transactions.

Setting up tax types

  1. In the Sales Tax Settings list, select I will not collect tax here for unnecessary tax types.
  2. For required tax types, enter registration numbers and set the compliance reporting deadlines in the Tax Return Frequency field.
  3. Scroll down and select Save.

Apply the tax

See the article How Accounting calculates tax on invoices.

Other tax settings