GST/HST, receipts and invoices for a Canadian salon
Two separate questions sit under the same three letters: the GST/HST your salon may owe on what clients pay you, and the GST/HST on what you pay Slotora. This guide takes them one at a time, says exactly what the software calculates and what it leaves to you and your bookkeeper.
Create your salon accountYour salon's GST/HST: what Slotora does with your prices
Slotora does not add GST or HST to your services. The price you type on a service is the amount the booking page shows, the deposit is worked out from, and the client pays at the counter. There is no tax line on the booking page and none on the payment confirmation a client receives.
That suits a salon that is a small supplier and not registered, which is common for a new esthetician, nail tech or barber. The Canada Revenue Agency's own guide sets the small supplier line at taxable revenue of $30,000 or less in a single calendar quarter and over the last four consecutive quarters. Past it, registration and charging GST/HST become yours to do.
If you are registered, Slotora will not split the tax out at the counter for you. Most registered salons in this position set their service prices to include the GST/HST they owe and account for it from their records, or let an accounting program issue the invoices, as described below. Ask your accountant which suits you; this page is not tax advice.
What a client receives after paying
Proof of payment, not a tax invoice.
Payment confirmation
When you record a payment for a client with an email address, she is emailed a confirmation of the amount and how it was paid. It names your salon; it carries no GST/HST registration number or tax breakdown.
Stripe's own receipt
For a card payment through your Stripe account, Stripe can send its own receipt too, set in your Stripe dashboard. Its content is Stripe's.
An invoice, when she needs one
A client who wants a proper invoice for a treatment — an employer, an insurer for an RMT session — gets one from your accounting program, either automatically or from the booking.
Your own records
Reports, the bookings export and Day-end close give your bookkeeper what was booked and what was collected, by day, method and person.
Issuing invoices through Xero or QuickBooks from Canada
Open Invoicing in the left menu. A Canadian salon is offered No invoicing, Xero and QuickBooks.
01
Know that the labels say United Kingdom
The provider list reads Xero (United Kingdom) and QuickBooks (United Kingdom), and the hints quote British defaults. You connect your own organisation, wherever it is registered. We have not yet run it end to end with a Canadian organisation, so issue one invoice by hand and check it in your accounting program before you switch on automatic issuing.
02
Create your own app and paste its keys
As in the general Xero guide: make a web app in Xero's developer portal (or Intuit's, for QuickBooks) with the redirect address shown on the Invoicing page, then paste the Client ID and Client secret and press Save invoicing settings.
03
Always fill in the Tax type code
Slotora's built-in codes are Britain's, and a Canadian organisation names its GST and HST rates differently. Look up the code your organisation uses for GST/HST on sales in Xero's tax rates (or the tax code in QuickBooks) and type it in, so each invoice line is coded to your Canadian rate.
04
Set the rate in the tax section
The section uses the UK term, but the choice is the same: Standard rate with your percentage, or exempt if you are not registered. Slotora treats your prices as already including the tax and works the net amount and the tax back out of what the client paid.
05
Connect, test, then decide automatic or by hand
Press Connect Xero and approve your organisation, then Test connection. Tick Issue invoices automatically to raise one whenever a booking is paid or completed, or leave it off and press Issue invoice on the bookings that need one.
Gaps you should plan around
Where a Canadian salon needs more than Slotora gives today.
- No tax line at checkout
- Canadian clients are used to seeing tax added at the till. Slotora cannot add it on top; if you are registered, your price has to include it.
- Provincial sales taxes are not handled
- PST in British Columbia, Saskatchewan and Manitoba is not calculated anywhere in Slotora, for your services or for retail.
- British labels on the Invoicing page
- The provider names and hints still read as British, and the built-in tax codes are Britain's. Fill in your own Tax type code every time.
- Not tax advice
- Whether you must register, and how to show tax on your price list, is a question for the CRA or your accountant.
GST/HST on your Slotora subscription
The plan you pay Slotora for carries no GST/HST today. Belavin Limited, the UK company behind Slotora, is not registered for GST/HST in Canada, and Your plan says Prices in CAD. If that changes, the screen will show + GST/HST before any invoice does.
If your salon is a GST/HST registrant, put your number in the GST/HST registration number box on Your plan, written like 123456789RT0001. It is recorded as you give it, so a registered business is treated as one on our invoices from the first day it would matter. Your receipts for the subscription are under Your receipts.
Questions about GST/HST and receipts
Does Slotora add GST/HST to my clients' bills?
No. The price on your service is what the client pays. If you are registered, set prices that include the tax you owe.
Can my clients get an invoice with my GST/HST number on it?
Yes, if you connect Xero or QuickBooks under Invoicing. Your accounting program issues the invoice with your own details; Slotora only sends it the visit.
When do I have to register for GST/HST?
The CRA's small supplier rule is $30,000 of taxable revenue in one calendar quarter or over four consecutive quarters. Check the CRA guide, or ask your accountant, for your own case.
Is GST/HST charged on my Slotora plan?
Not today: Belavin Limited is not registered for GST/HST in Canada. If that changes, Your plan will show it before you are charged.
What should I enter as the Tax type code in Xero?
The code your own Canadian Xero organisation uses for GST/HST on sales, from its tax rates list. Slotora's defaults are British codes and do not fit a Canadian organisation.
Sources
The small supplier rule is the Canada Revenue Agency's, from its own guide, read on the day shown.
- Canada Revenue Agency — RC4022, General Information for GST/HST Registrants (small supplier) — https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4022/general-information-gst-hst-registrants.html · Read on
Decide once, with your accountant
Tax-inclusive prices or invoices from your accounting program: either works in Slotora, as long as you choose before your busy season.