Accounting in Canada: standards, taxes and GoSoft
Accounting guide for Canada: Canada Revenue Agency (CRA), GST/HST 5 % · 13–15 %, accounting framework, books, e-invoicing, tax returns and how to set up GoSoft.
Key facts
| Item | Detail |
|---|---|
| Tax authority | Canada Revenue Agency (CRA) |
| Currency | CAD · Canadian dollar |
| Tax ID | BN |
| Consumption tax | GST/HST · 5 % · 13–15 % |
| Income tax | Federal corporate income tax (15 % general rate, lower for small private companies) plus each province's tax. |
| Fiscal year | The company chooses its fiscal year (up to 53 weeks); it need not match the calendar year. |
| E-invoicing | There is no mandatory e-invoicing; invoices must show the GST/HST registration number so the customer can claim input tax credits (ITC). |
Accounting framework
IFRS for publicly accountable enterprises; ASPE (Accounting Standards for Private Enterprises, CPA Canada) for private companies; ASNPO for not-for-profits.
Chart of accounts
There is no mandatory chart of accounts: the company defines it according to its framework. GoSoft ships a base chart you can adapt.
Financial statements
In Canada the four statements are presented with these names (GoSoft uses them in its reports and PDFs):
- Statement of financial position
- Income statement
- Statement of changes in equity
- Statement of cash flows
Mandatory books and records
Books and records generally kept for six years, on paper or electronically.
Periodic tax returns
GST/HST return (monthly, quarterly or annual depending on sales) and annual corporate income tax return (T2).
What you need to know
- Federal GST is 5 %; in HST provinces the combined rate is higher (Ontario 13 %; Atlantic provinces 14–15 %).
- Quebec also charges QST (9.975 %), and British Columbia, Saskatchewan and Manitoba charge their own PST.
- The GST/HST paid on purchases (input tax credits) is deducted from the tax charged on sales.
Taxes and withholdings in GoSoft
These are the reference taxes and withholdings GoSoft loads for Canada. You adjust them in Taxes and withholdings (rate, minimum base and ledger account).
| Code | Name | Type | Applies to | Rate |
|---|---|---|---|---|
GST5 | GST 5% | VAT | sales and purchases | 5 % |
HST13 | HST 13% | VAT | sales and purchases | 13 % |
HST15 | HST 15% | VAT | sales and purchases | 15 % |
RET-NR | Non-resident withholding (Part XIII) | Income | payments to suppliers (withholding) | 25 % |
How to set up GoSoft for Canada
In My company, choose the country Canada and the currency CAD.
When you log in again, GoSoft shows Updating the accounting setup for Canada: it codes the chart of accounts, loads the country's taxes and checks the settings. It happens only once.
In Chart of accounts → Options, review the coding and download the chart as a PDF for your accountant to approve.
In Financial reports → Taxes and withholdings, confirm the rates and choose the ledger account for each tax.
Record activity (manually or from the modules) and use Tax returns to prepare each period's drafts.
Rates and deadlines change. Before filing, confirm what is current at Canada Revenue Agency (CRA) and with your accountant.