GST and PST Bookkeeping in Regina

Use the right tax account for the transaction

Saskatchewan PST is 6%; ordinary taxable supplies made in Saskatchewan generally attract 5% GST. Exemptions, zero-rating and place-of-supply rules can change the result. A single combined tax code should never decide whether a farm purchase, service invoice or out-of-province sale qualifies.

We build a transaction review around what was supplied, where it relates and the evidence supporting the code. Tax charged to customers, eligible GST input tax credits, PST on business purchases and any PST self-assessment belong in distinct controls. PST does not have the general GST-style input tax credit mechanism.

Reconcile before using the reserve

A separate bank savings account can help cash planning, but its balance is not a completed tax calculation. We compare the liability accounts with sales reports, purchase documents, filed returns and payments. Unusual supplier invoices go onto an exceptions list rather than receiving an automatic credit because a tax field contains a number.

Illustrative Regina example

A retailer sells $7,500 of goods that are fully taxable under both systems. GST of $375 and PST of $450 produce an $8,325 customer total. The $825 tax collected is separated from revenue. Purchase-side GST eligibility and any PST adjustments are then checked independently before either remittance is estimated. This example assumes a registered business and does not classify every product in the shop.

Questions about this work

Put this into practice

• PST on bookkeeping invoices →
• Farm exemption evidence →
• Retail payout reconciliation →