Zoho Inventory

Canada taxes - GST, PST & HST

The Canada tax module is exclusive to Canada. This feature will be available when you select Canada as your country during quick setup of an organization. Below are a list of operations you can perform with tax.

Guide Layout:

General Information on Canadian Taxes

Provinces in which HST is applied:


Terminologies

Name Description
Tax Name It refers to the name you’d like to assign to a particular tax. Ex: GST in Canada is 5%, hence the tax can be named as GST.
Tax Agency It refers to the agency in charge of collecting taxes for that specific province. Ex: New Brunswick - Department of Finance is responsible for collecting the HST for New Brunswick province.
Rate Refers to the tax rate pertaining to a province in percentage. Ex: GST in Canada is 5%, British Columbia PST is 7%.
Exemption Reason Users have to enter why a customer / transaction / item is exempt from sales tax. Ex: Medicine, Legal aid services, Music lessons etc.

Prerequisites

Enable Tax

To enable tax,

enable tax

Tax module

Activated Tax module


Setting up Taxes for Canada in Zoho Inventory

Creating Taxes

Accessing tax module

Tax page

New Canada Tax


Creating Tax Groups

Accessing tax module

Tax page

Tax group


Adding Tax Agencies

Accessing tax module

Tax page

New Canada tax agency


Recording Tax Exemptions

Accessing tax module

Tax page

New Canada tax exemption


Setting up your Default Tax

The Default Tax will be applied to transactions for which the tax preference(Taxable/Tax Exempt) is not set for the involved customers. By default, the first tax created by you will be marked as the Default Tax. However, you can change your default tax according to your needs.

Default Tax application scenarios.
Changing the default tax

To mark a different tax as default,

Change default tax


Contacts

Associating tax for a contact

Say for instance, your customer resides in Nova Scotia and you wish to have the tax associated with the customer. Then you can do it this way while recording/creating the contact:

Associate Tax for Contact


Making a contact nontaxable

To do so while creating a contact:

Contact Non-Taxable


Items

Associating tax to items

While creating an item, you can choose to make it taxable or non-taxable. To make an item taxable:

Items Taxable


Making an item nontaxable

While creating an item, you can choose to make it taxable or non-taxable. To make an item taxable:

Items Taxable


Sales Orders & Invoices

Tax Information in Sales Orders & Invoices

Tax Information in Invoice


Making an Item Non-Taxable on a Sales Order or an Invoice

Non-Taxable Item in Invoice


Purchases

Taxes for Purchases


Additional Functions

GST/HST Returns

This part can taken care by integrating your Zoho Inventory with Zoho Books. Click here to know more about generating GST/HST Returns for your Zoho Inventory organization in Zoho Books.

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