c21accountingsoftware.com

21st Century Accounting handles Canadian sales taxes (GST, HST, PST, QST) as follows:

Configure: For purposes of calculating GST, PST, QST, and HST on items and invoices, 21st Century Accounting automatically configures tax authorities and then sets up tax groups for the standard taxing authorities. Then you assign the appropriate tax groups to customers, to vendors, and, optionally, to product list items.

Sales: When you enter a sales invoice that references product list items to which a tax group has been assigned, the tax group associated with the item overrides the tax group associated with the customer. This feature allows you to handle items that are tax exceptions to the customer's tax group, such as, for example, services that are subject to GST but not to PST. When you post a sale invoice, the taxes are automatically credited to the liability accounts associated with the authorities in the tax group(s).
You can change or remove tax groups on a line-by-line basis on a sales invoice.

Payables: You assign a GST or HST tax group to associate with a vendor for automatic display when you enter invoices for the vendor. The GST or HST paid that you enter from the vendor's invoice is automatically debited to liability accounts associated with the GST or HST authority in the tax group defaulted from the vendor configuration or selected for the invoice.

The resulting net amount in each tax authority account reflects your tax liability at any given time for the authority.