Setting up PST on projects

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If your projects are subject to Provincial Sales Tax (PST), you can configure it as a named tax rate instead of applying it through activity items and a custom invoice template. For example, a 7% PST that applies to 30% of billed amounts produces an effective tax rate of 2.1%.

To configure PST:

1. Open the Tax Rates screen from the side menu > Settings > Billing & Invoices.
2. Add a new tax rate. Enter PST in Name and set Tax Type to Percentage.
3. Set Tax Application to Invoice Total - Services. For expense taxes, select Invoice Total - Expenses.
4. Enter 7 in Rate and 30 in Taxable Base %.
5. Under Exemptions, add any activities that are not subject to PST.
6. Save the tax rate.
7. Assign PST to the applicable projects under Projects > Settings > Billing Options. You can also assign it to the client so that it is copied to new projects automatically.
8. To apply PST to multiple existing projects, use the batch update option from the project list. To apply PST automatically to new projects, add it to the appropriate project template.

When assigned, PST appears as a separate labeled line on the invoice. A custom invoice template is not required.

Note: If you synchronize invoices with QuickBooks Online or Xero, review your integration settings. Named tax rates may require additional configuration for the accounting integration.