Manage sales tax easily

Automatically calculate sales tax on transactions and generate sales tax return reports.

Sales tax

Localized sales tax rates

Use the preset standard rates or create your own.

Automated calculations

Sales tax on transactions is recorded for you.

Sales tax return reports

Generate sales tax reports for filing periods.

Localized sales tax rates

The relevant tax rates for sales and purchases come set up in Xero and are updated automatically.

  • Included
    Set a rate as the default for accounts, contacts or items
  • Included
    Alter the GST/HST or provincial sales tax on any line item if needed
  • Included
    Add or customize tax rates
A list of tax rates in the Xero application, with the 'Exempt sales' and 'MB - GST/RST' options highlighted.

Automated calculations

Calculate GST/HST or provincial sales tax on each line item in your invoices, quotes, purchase orders, and bills.

  • Included
    The tax rate selected for each line item is used to calculate the sales tax
  • Included
    Taxes for a transaction can be tax inclusive or exclusive, or no tax
  • Included
    Set up default rates for contacts, inventory items, and accounts
A consultant speaks to a client, with the tax rate option 'BC - GST/PST on Sales' highlighted.

Sales tax return reports

You can generate sales tax return reports for select tax periods with automatic calculations and easily view individual transactions.

  • Included
    Default tax rates are automatically mapped to corresponding lines or boxes on the return reports
  • Included
    Easily view individual transactions within each return line or box number
  • Included
    Track prior period adjustments to account for added, deleted, or edited transactions
  • Included
    GST/HST, British Columbia PST, Manitoba RST, Saskatchewan PST, and Québec QST return reports are currently available
The sales tax summary report in Xero, with a summary of taxes by tax component.

More about sales tax

Canada GST/HST or provincial sales tax return reports automatically include transactions that relate to prior return periods – transactions you enter or alter after the return for that period was finalized – from the date you start using the return in Xero.

See how prior period adjustments work

View all of your sales tax return reports along with their status, date, and amount owing or owed. Xero retains historic sales tax return reports so it’s simple to look back and keep business records in Xero.

British Columbia PST, Manitoba RST, Saskatchewan PST, and Québec QST reports are available in addition to GST/HST reports.

Start using Xero for free

Access all Xero features for 30 days, then decide which plan best suits your business.

  • Included
    Safe and secure
  • Included
    Cancel any time
  • Included
    24/7 online support

I find Xero’s interface really user friendly

Studio Banaa use Xero to look after their businesses finances

Two architects looking at plans