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How to setup Invoices Tax code for the Province of Ontario, Canada?
Updated on May 30, 2019 04:58AM by Admin
Users in the Province of Ontario, Canada can easily set up their online invoices to charge for the proper taxes. In the province of Ontario, businesses are required to charge HST taxes on all products/services they sell. You can use our multi-rate tax codes calculator to make these tax rates available for use when creating invoices.
The tax code followed in the Province of Ontario, Canada are:
- The Harmonized Sales tax (HST), is a value-added tax and is composed of the federal GST(5%) and a provincial (PST) component of 8%
- The total tax rate is 13% which is applied to all goods and services taxable under the federal excise tax Act.
Reference: Harmonized Sales Tax(HST) rate of the province of Ontario, Canada is referred from Wikipedia (Sales tax, Canada)
Steps to Configure Taxes on Invoices App Settings
- Log in and access the Invoices App from your universal navigation menu bar.
- Click on “Settings” icon at the app header bar.
- Select “Taxes” from the left navigation panel.
- Select “Multi-Rate Taxes” and click on “Create” button.
- You can view Create multi-tax rate pop-up, which allows you to “create” or “add” taxes from the list.
- If you create tax to provide tax code, tax rate type, and percentage.
- In tax rate type, there are two options:
- Click “create” to get done with your multi-tax formation. Which indicates with a tax code created pop –up.
- In capturing tax codes, two options are provided:
- After selecting capture tax code, it auto updates itself. Thereafter for every invoice created will be based on the tax code level captured.
- You can enable or disable a tax code by clicking the highlighted symbol under the actions column.
- Now, we proceed with creating a new invoice with the above settings.
- You can either Email an invoice with PDF attachment or manually print invoice to be provided to your customer.
- This is how a customer views Invoice tax code items subtotals in PDF format.
Follow this link to know more about Invoices tax code followed in various countries