Steps
- Open Tax Rates. In the back office sidebar, open Settings and click Tax Rates. The page lists All your tax rates, with Tax groups below.
- Click Add. Click Add above the tax rates list to open Add Tax Rate.
- Enter the name and rate. Type a Name, such as GST, and the Tax Rate %, such as 5.
- Mark group-only rates. Tick For tax group only if this rate is only charged together with another, such as PST in a GST + PST group. It then won't appear on its own in product tax lists.
- Save. Click Save. Repeat for each rate you collect.
- Add a 0% rate for exempt items. Create a rate such as Exempt at 0% for items you don't charge tax on, and set it on those products.
- Set the tax on products. Edit your products and pick the rate or tax group under Applicable Tax, or set a default under the Sale tab of Business Settings.
Common Canadian set-ups
Alberta and the territories charge GST at 5% only. Ontario and the Atlantic provinces charge a single HST rate. British Columbia, Saskatchewan and Manitoba charge GST plus a PST, and Quebec charges GST plus QST. For two-tax provinces, create both rates, tick For tax group only on the provincial one if you never charge it alone, and combine them in a tax group.
Rates change from time to time. Check the current rate with the tax authority before you set it up.
Frequently asked questions
How do I set up GST and PST in SeroPOS?
Create two tax rates under Settings › Tax Rates, for example GST 5% and PST 7%. Then add a tax group named GST + PST that combines them. Set the group on products that carry both taxes, and GST alone on products that only carry GST.
How do I make an item tax-exempt?
Create a tax rate at 0%, named for example Exempt or Zero-rated, and set it as the product's tax. The item then sells with no tax. Using a named 0% rate rather than leaving tax blank makes it clear in reports why no tax was charged.