Sales tax report
Before you file, the SeroPOS tax report shows the tax you charged on sales, the tax you paid on purchases and expenses, and the difference between them for the dates you choose.
Tax report in SeroPOS
Output tax on sales
The Output Tax tab lists tax charged on sales for the period, invoice by invoice.
Input tax on purchases
The Input Tax tab lists tax paid on purchases from suppliers, purchase by purchase.
Expense tax
Tax on expenses recorded in the back office has its own tab, so it isn't missed.
Overall figure
Output tax minus input tax minus expense tax gives the net amount for the period.
Works with tax groups
Tax rates and tax groups such as GST plus PST are set up once and carried through to the report.
Location and date range
Filter to one location or all, and set the dates to your filing period.
Output, input and expense tax
Open Reports, then Tax Report, and set a location and a date range. The report is split into three tabs. Output Tax shows the tax you charged customers. Input Tax shows the tax you paid suppliers on purchases. Expense Tax shows the tax on expenses you entered, such as supplies or repairs.
Above the tabs, the Overall figure takes output tax and subtracts input tax and expense tax. For a business registered for GST/HST, that difference is the starting point for the return, since tax paid on business purchases is generally claimed against tax collected. Your accountant can confirm which purchases qualify in your case.
Details by invoice and purchase
A total on its own is hard to check. Each tab lists the transactions behind it, so output tax is shown per invoice and input tax per purchase. If the figure looks high or low, scroll the list for a sale with the wrong tax rate or a purchase entered without tax.
Because the lists come from the same records as your sales and purchase screens, a correction made there carries through to the report. Fix the purchase, run the report again for the same dates, and the totals update. The same goes for a sale: correct the invoice, and its tax moves on the Output Tax tab. It's worth running the report before each filing so problems are found while they're still fresh.
Setting up tax so the report is right
Tax is set up under Settings, Tax Rates. Each rate has a percentage, and 0% marks a product as exempt. Tax groups combine rates, so a group of GST and PST can be applied to a product in a province that charges both. The business's tax names and numbers go on the Tax tab of Business Settings.
Every product carries an applicable tax and a price tax type, inclusive or exclusive. Purchases and expenses have their own tax fields. When those are filled in consistently, the tax report needs no adjustment at filing time. Inline tax on purchase and sale lines can be turned on in the same Tax tab if you need a different rate on individual lines.
Tax report or daily sales report
The daily sales report also has a tax summary, with GST and PST shown separately and product taxes listed. It covers the tax you collected on sales, which is what many small cafés and shops look at first. Its date range can be set to a filing period too, and the PDF can be downloaded or emailed straight from the report screen.
The tax report goes further by bringing in the tax on what you bought. If you claim input tax credits on purchases and expenses, this is the report to run for the filing period. Many owners run both: the daily sales report to check collected tax by type, and the tax report for the net figure.
Frequently asked questions
What is the difference between input tax and output tax?
Output tax is the sales tax you charge customers. Input tax is the tax you pay on purchases and expenses for the business. For GST/HST, registered businesses generally remit output tax minus eligible input tax credits. The SeroPOS tax report shows both and works out the difference for the period.
Can I use the tax report for my GST/HST return?
It gives you the figures most returns start from: tax collected on sales, tax paid on purchases and expenses, and the net amount. Check them with your accountant, since which purchases qualify for credits depends on your situation. SeroPOS doesn't file the return for you.
Does the report show PST separately?
The tax report lists tax per invoice and purchase using the rates and groups you set up. For a split by tax type, the daily sales report shows GST and PST in separate columns along with a tax summary for remittance, which is often the easier way to see provincial tax on its own.
Why is input tax missing for some purchases?
Usually the purchase was entered without a tax rate on its lines or on the order. Open the purchase from List Purchases, add the correct tax, and save. Run the tax report again for the same dates and the purchase appears on the Input Tax tab.
Can I run the tax report for a quarter?
Yes. Set the date range to the first and last day of the quarter, or any filing period, and pick one location or all of them. The tabs and the overall figure cover exactly those dates. Export or print the tabs to keep with your return.