How to Set Up GST/ PST - Canada Only

Overview

If you use QuickBooks Online, you may need to create customer and supplier invoices that contain both single tax codes and combined tax codes. Learn more about using tax codes in How to Use Tax Codes.

In order to view content or perform actions referred to in this article you need to have the appropriate permissions enabled in your security group. Go to System A screenshot of a schedule icon with a grey calendar icon and an arrow. > Setup > Security Groups and access your security group to update your permissions. The relevant security group tab and specific permissions for this article can be found here:

Tax Codes

To apply the correct taxes for British Columbia, you first need to create a Goods and Services Tax rate and a Provincial Sales Tax rate, and then use them to create a combined tax rate.

To set up a PST tax rate:

  1. Go to System A screenshot of a schedule icon with a grey calendar icon and an arrow. > Setup > Accounts > Tax Codes.
  2. Click Create Tax Code.
  3. In the Tax Code field, enter the tax code exactly as it appears in your accounting package. For example, PST (BC).
  4. Set the Tax Rate to 7%.
  5. In the Tax Name field enter PST British Columbia.
  6. Set the type to Single.
  7. Toggle on Options, as required.
  8. Click CREATE.

To set up a GST tax rate:

  1. Go to System A screenshot of a schedule icon with a grey calendar icon and an arrow. > Setup > Accounts > Tax Codes.
  2. Click Create Tax Code.
  3. In the Tax Code field, enter GST.
  4. Set the Tax Rate to 5%.
  5. In the Tax Name field, enter Goods and Services Tax.
  6. Set the type to Single.
  7. Toggle on Options, as required.
  8. Click CREATE.

To set up a combined tax rate:

  1. Go to System A screenshot of a schedule icon with a grey calendar icon and an arrow. > Setup > Accounts > Tax Codes.
  2. Click Create Tax Code.
  3. In the Tax Code field, enter the tax code exactly as it appears in your accounting package. For example, GST/PST (BC).
  4. In the Tax Name field, enter GST and PST British Columbia.
  5. Set the type to Combined.
  6. Toggle on Options, as required.
  7. Under Available Tax Code Members add PST British Columbia and Goods and Services Tax.
  8. Click CREATE.

To apply the correct taxes for Saskatchewan, you first need to create a Goods and Services Tax rate and a Provincial Sales Tax rate, and then use them to create a combined tax rate.

To set up a PST tax rate:

  1. Go to System A screenshot of a schedule icon with a grey calendar icon and an arrow. > Setup > Accounts > Tax Codes.
  2. Click Create Tax Code.
  3. In the Tax Code field, enter the tax code exactly as it appears in your accounting package. For example, PST (SK).
  4. Set the Tax Rate to 6%.
  5. In the Tax Name field, enter PST Saskatchewan.
  6. Set the type to Single.
  7. Toggle on Options, as required.
  8. Click CREATE.

To set up a GST tax rate:

  1. Go to System A screenshot of a schedule icon with a grey calendar icon and an arrow. > Setup > Accounts > Tax Codes.
  2. Click Create Tax Code.
  3. In the Tax Code field enter GST.
  4. Set the Tax Rate to 5%.
  5. In the Tax Name field enter Goods and Services Tax.
  6. Set the type to Single.
  7. Toggle on Options, as required.
  8. Click CREATE.

To set up a combined tax rate:

  1. Go to System A screenshot of a schedule icon with a grey calendar icon and an arrow. > Setup > Accounts > Tax Codes.
  2. Click Create Tax Code.
  3. In the Tax Code field enter the tax code exactly as it appears in your accounting package. For example, GST/PST (SK).
  4. In the Tax Name field, enter GST and PST Saskatchewan.
  5. Set the type to Combined.
  6. Toggle on Options, as required.
  7. Under Available Tax Code Members add PST Saskatchewan and Goods and Services Tax.
  8. Click CREATE.

Learn about exporting transactions to QuickBooks in Export Invoices and Credits to QuickBooks Online.