Accounting Software for Canadian Businesses

How Provincial Taxes Affect Your Bookkeeping

Canadian accounting is more complex than it looks. Here's what your province means for your books.

Different provinces require different GL account structures. In HST provinces like Ontario, you track a single combined tax liability. In GST+PST provinces like BC, you need separate accounts for GST (recoverable as an Input Tax Credit) and PST (non-recoverable, treated as a business expense). In Quebec, the QST calculation differs from all other provinces because it's applied to the subtotal only, not compounded on GST.

Tax reporting varies by province. GST/HST is reported to the CRA on your GST/HST return. But PST is reported separately to each provincial authority (BC Ministry of Finance, Saskatchewan Ministry of Finance, Manitoba Finance). Quebec businesses report QST to Revenu Quebec, not the CRA. Your accounting software needs to track these separately so you can file the correct returns with the correct agencies.

ITC eligibility depends on tax type. GST and HST paid on business purchases can be claimed as Input Tax Credits on your CRA return, reducing the amount you owe. PST paid in BC, Saskatchewan, and Manitoba is generally not recoverable and must be expensed. QST in Quebec is recoverable through Input Tax Refunds (ITRs) filed with Revenu Quebec. iBill.ca tracks ITC eligibility automatically, posting GST/HST to a recoverable account and PST to an expense account.

Whether you're generating a balance sheet, reviewing your income statement, reconciling bank transactions, or calculating CCA depreciation, iBill.ca handles the provincial complexity so you can focus on running your business.