How to exempt GST or HST from purchases and sales

Here are the steps to exempt GST or HST in sales invoices and vendor bills with Sage Accounting.

The Canadian government has announced a GST/HST holiday from December 14, 2024, to February 15, 2025. During this period, there are no GST/HST charges on certain qualifying items, including:

• Groceries
• Restaurant meals and drinks
• Children's clothing and footwear
• Children's diapers and car seats
• Children's toys and video game consoles
• Physical books and printed newspapers
• Christmas trees and similar decorative items

This initiative aims to provide financial relief to Canadians, especially during the holiday season.

HST provinces are exempt from the full tax amount. GST provinces and territories are only exempt from the 5% GST.

As of December 14, 2024:

HST full exemption:

New Brunswick: 15%
Newfoundland and Labrador: 15%
Nova Scotia: 15%
Ontario: 13%
Prince Edward Island: 15%

GST 5% exemption:

Alberta
British Columbia 
Manitoba 
Quebec 
Saskatchewan
Yukon
Northwest Territories
Nunavut

• When creating a vendor bill or sales invoice, select the appropriate Tax Rate from the drop-down menu
• The drop-down tax options vary based on the Vendor's or Customer's address

Examples:

1. For exempted items with an Invoice Address in BC, select the 7% tax rate.

    

    The total cost exempts the 5% GST.
   
2. For exempted items with a Tax Rate for: Ontario, select the 0.00% tax rate. The full HST is exempt.