To set up HST in Square, first determine which tax you should charge, then configure Square’s Canadian sales-tax settings and test a receipt. A Square tax setting is not a legal determination of taxability or place of supply.
1. Check registration and the rate first
Determine whether you are registered or required to register, your effective date, the supply’s classification and where it is supplied. The ordinary small-supplier test generally considers relevant worldwide taxable supplies over one quarter or four consecutive quarters, with special rules for some activities. CRA: registration.
For a taxable Ontario sale at the general rate, HST is 13%; Nova Scotia HST is 14%, and New Brunswick, Newfoundland and Labrador, and PEI HST is 15%. Elsewhere GST is generally 5%, with separate provincial taxes potentially applying. A single combined rate will not handle every product or transaction. CRA: current rates.
2. Add a tax enrolment or create a tax in Square
Square’s current Canadian instructions use Dashboard → Settings → Account & Settings → Payments → Sales taxes. To add an enrolment for automatic calculations, choose Manage under Tax Enrolments, then Add tax enrolment, select the province and save. The inputs and fulfilment location affect the automatic rate; the setting does not create a CRA or provincial tax account.
For a manually configured rate, choose Create tax, name it and enter the rate and locations. Choose whether it applies to all current and future taxable items or selected items. Square also offers a switch for custom amounts and a choice between additive and inclusive calculation. A non-taxable item is not automatically taxed. Square: create and manage taxes.
In the POS app Square documents More → Settings → Checkout → Sales taxes → +. Available screens can vary by product and fulfilment method. For delivery and pickup orders, go to Sales taxes → Delivery and pickup tax overrides → Manage settings. Delivery orders can use automatically generated rates, manual rates by destination, a default rate, or no tax collection at all; pickup orders have the same choices except no tax collection; a separate switch can exempt delivery fees from tax. Shipping and non-physical orders have their own override section with automatically generated rates, manual rates by destination, or no tax collection, but no default rate.
How to stop Square from charging GST/HST on an item
To exempt one item, edit the tax’s Tax application setting, choose Select items, and leave that item out — a non-taxable item is not automatically taxed. To stop a tax for every future sale, use Actions → Disable tax, which keeps the tax record but removes it from new transactions; Actions → Delete tax removes it permanently and cannot be undone. For a rule-based exception rather than an item, toggle on Add exemption rule under “Tax exemption” when creating or editing the tax, and specify when it should not apply. Square: create and manage taxes.
3. Test an item and a custom amount
Suppose a taxable Ontario item costs $100 before tax, and an additive 13% HST rate applies. A test sale should show $13 HST and $113 total. If the displayed $100 price is tax-inclusive instead, the HST portion is approximately $11.50 and the total remains $100; the two settings are not interchangeable. Check rounding and the transaction’s actual tax treatment.
| Setting | Price shown | HST | Customer pays |
|---|---|---|---|
| Additive | $100.00 | $13.00 | $113.00 |
| Inclusive | $100.00 | $11.50 (inside the price) | $100.00 |
Test a normal item, a custom amount, an item that should not receive that rate, a refund and any relevant delivery or shipping fee. Review the actual customer receipt and the sales-tax report. If something is wrong, correct the configuration before further sales and investigate any earlier transactions.
4. Check the GST/HST number and invoice fields
Square says to enter applicable GST/HST and PST/RST/QST numbers in Business Identification Numbers under the public profile or receipt settings. Square: tax ID disclosure.
A tax number in the dashboard does not by itself prove that every Square receipt or invoice has all information the buyer needs: CRA’s input-tax-credit documentation requirements get stricter as the purchase total rises. Check a real output against the full table and supply any missing information needed by the customer. CRA: ITC records; CRA invoice requirements by transaction amount; invoice fields guide.
5. Reconcile and file
In Square Dashboard, go to Reports → Accounting → Sales taxes for an overview of how your tax rates are being used, including taxable and non-taxable sales. Taxable sales may not add up to the total tax collected because some sales and items may have multiple tax rates applied.
Compare Square sales and tax totals, refunds, deposits and other sales channels for your assigned reporting period. Keep supporting purchase invoices for any eligible input tax credits, file the required GST/HST return and arrange payment or claim a refund as applicable. Sales-tax settings are not the return. See the filing guide.
Sources checked October 16, 2026: Square Canadian help and CRA registration, rates and documentation guidance linked above.