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Canadian multiple tax rates - GST, PST, HST

What it Does

  • You can setup your GST and PST tax rates, and a combo rate
  • You can choose which products/services get a specific rate or combo
  • You'll get reporting that just works, and it shows the dual taxes on the receipts/invoices

In areas of Canada that have provincial and federal sales tax, you will need to create the two rates and then combine them into a third rate.

First, enable multiple tax rates.

  1. Go to Admin > Invoices - Preferences.
  2. At the bottom, click Additional Settings.
  3. Check the Enable multiple tax rates box.
  4. Scroll down and click Save.

Second, create the three different rates.

  1. While still in Admin, go to Invoices - Tax Rates.
  2. Click New Tax Rate.
  3. Give it a Name and fill in the percentage amount for GST.

  4. If needed, select the correct QuickBooks tax code.
  5. Click Create Tax rate.
  6. Do the same for PST.
  7. Click New Tax Rate.
  8. Give it a Name such as HST.

  9. Check the Is tax group box.
  10. Select the GST rate for the first group, PST for the second.
  11. If needed, select the correct QuickBooks tax code.
  12. Click Create Tax rate.
  13. Drag the combined group to the top so it becomes the Default.

  14. You will need to refresh the page to see the change.

Third, select the correct tax rate for any items that only charge GST or PST. All other items will use the default rate.

  1. Go to Inventory.
  2. Edit a product.
  3. Click the Tax Rate drop down and select the GST or PST rate.
  4. Click Update Product.

Now invoices will show both GST and PST.

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