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Below is a detailed explanation on how Canadian Sale Taxes are handled in invoiceit!:
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This page applies to users in Canada only. If you are in Quebec or on Prince Edward Island, click here for different examples, as taxes are calculated differently in those provinces. We have used an example of a company from Ontario, selling a couple of products to three clients, one from the same province, one from an HST-participating province and one from another province. 

1.) Settings on setup page 1:

Select your home province and check the names and rates of applicable sale taxes that are set byinvoice it!

2) Clients

When you enter new clients, check the tax that is applicable to each client. The three examples show how tax is set for clients from HST participating and non-participating provinces. These are set automatically once you enter the client's home province and should be checked for accuracy.

	Example 1: client and vendor in same non-participating province (GST and PST)
	Example 2: client in non-participating province and vendor in participating province (HST only)
	Example 3: client and vendor in different, non-participating provinces (GST only)

3) Products (Stock) and Services

	Set the tax rates that apply to each product or service, if different from the rate shown. If the tax does not apply enter 0%. The example at left shows one product subject to all Taxes
	and this one subject to GST/HST only. The examples are ficticious and may be different in reality.

Invoicing

Having entered the tax parameters for your clients and products/services, the taxes are now applied automatically. Note the different tax values for three invoices of identical items to our three clients in different provinces. 

You can easily check and edit taxes for this invoice. Click on the Tax Edit button on the left button bar   The Tax edit form appears. Below it is shown after each of the three invoices:

 

To apply a tax to all products/services charged, click Apply. Click the Undo button to remove that tax from all products/services charged. To edit any of the taxes, click the Edit button. In the following example we look at the PST charged on invoice #2115

here you can change the individual rates line-by-line. You cannot change the tax amount, only the rate, which then calculates the amount. This will avoid calculation errors. Enter 0 if a tax does not apply to a certain item. This should not be necessary in most cases since the tax rates are picked up from your client/product/services settings mentioned above.

 

And this is how it looks on the printed invoice. Columns shown can be removed, resized, repositioned or renamed on Setup page 3

Receipts

When you post receipts (enter payments received from clients) these amounts are automatically posted to the cashbook and taxes contained in those payments are posted to their respective ledgers. The entries you see at left were all created with one double-click.

 

Tax Reports

You can print a report on all Taxes received or paid by selected date range, so you know how much tax to pay to the authorities. Click on Cashbook menu, Reports button at left then select 'Tax Reports'. Chose from detailed or summary report, set a date range and click the Print button at top. An additional report opens to show HST collected by participating Province.

To return to the FAQ page, click here

 

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