How to record sales taxes for items that are temporarily exempt

The Government of Canada has announced a proposed measure to provide GST/HST relief on certain items from December 14, 2024, to February 15, 2025. See the Sage Community Hub Post for more information.

Use tax exempt tax codes for items that are temporarily tax exempt.

You can use an existing tax-exempt tax code if it’s configured correctly. If no existing tax code meets the requirements, create a new one. 

To see your existing tax codes:

1. Go to Setup, Settings, Company, Sales taxes, Tax Codes.
2. Double-click each one or two letter tax code to see the tax code details.
3. Confirm which tax code has the tax exemption settings required.

To create a new tax-exempt tax code:

1. Go to Setup, Settings, Company, Sales taxes, Tax Codes.
2. Select the first empty line and type in a unique one or two letter tax code and description.
3. Double-click the tax code to see the details.
4. Enter the tax code details and set the appropriate tax or taxes to the Status of Exempt.

 NOTE: Consult a professional accountant if you're not sure which tax exempt tax codes to use or set up. 

More details on creating tax codes