Overview

This suggested guide outlines the steps for businesses to manage the temporary zero-rating of GST/HST for qualifying goods and services in response to the Canadian government's GST/HST holiday tax break. Please contact your Spire partner for assistance if needed.


For more details on the policy, refer to the official Canadian government announcement.


Key Dates

  • December 13th, 2024: Initial adjustment of tax codes and import into the system.
  • February 15th, 2025: Update of tax flags to handle transactions beyond the zero-rating period.

Instructions

  1. Export Part Numbers for Applicable Goods
    • Filter a list of part numbers for goods  as close as possible that qualify for the GST/HST holiday.
    • Export this list into a spreadsheet using the Export feature.
  2. Add Sales Tax Codes to the Spreadsheet
    • Open the exported spreadsheet.
    • Manually add or remove part numbers as needed to make the list accurate.
    • Add a new column titled Sales Tax Code.
    • Add another new column titled Tax Applies.
    • Assign appropriate values for Sales Tax Code column to relevant rows. 
    • Update Tax Applies to False for relevant lines.
    • For clients needing both GST and HST make a copy of the spreadsheet and change the sales tax code.
  3. Import Updated Tax Codes (December 13th End of Day)
    • Save and close the updated spreadsheet(s).
    • Navigate to Inventory Sales Tax Import in Spire.
    • Load the spreadsheet from step 2 and match the relevant columns.
    • Import the spreadsheet to update tax codes for the applicable goods. 
    • Repeat for optional second spreadsheet if needed.
  4. Verify Results
    1. Check the imported changes correctly reflect the desired tax results in Spire.
    2. Make any changes needed and repeat import if necessary.
  5. Edit Tax Flags back
    • Update the tax flags in the spreadsheet and reverse the changes made in Step 2 (For example - False to True for relevant rows). 
  6. Import Updated Tax Flags (February 15th End of Day)
    • Use the Inventory Sales Tax Import function to re-import the updated spreadsheet into the system.
  7. Verify Results
    • Check the imported changes correctly reflect the desired tax results in Spire.
    • Make any changes needed and repeat import if necessary.

Important Note

  • Delivery and Payment Timing: Goods must be delivered and paid for by February 15th to qualify for the zero-rating. Transactions not meeting this condition will require the standard GST/HST rate. You will need a process to make sure you correctly handle sales orders that are created during zero rating period but will not meet the delivery/payment requirements.
  • This Import will need to be run before start of day on Dec 14, 2024 and after end of day on Feb 15, 2025.
  • Inventory Product Codes Sales Tax: Alternatively if sales taxes are set up on the inventory product code you can use the Inventory Product Code Sales Taxes import.