Sales tax for restaurants
Restaurant GST, HST and provincial tax, province by province
Mosey works out GST, HST and provincial sales tax on each line of a sale, from the kind of item and the province your business is in, and shows each tax by name on the bill. The report at the end of a period adds up the saved lines, so your accountant starts from your actual sales.
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Why Canadian restaurant tax is harder than one rate
Canada has three layers: GST everywhere, HST in the provinces that blend it with their own tax, and a separate provincial tax in provinces like British Columbia. What a restaurant charges depends on the province, and on what is on the plate: food, a soft drink, a beer, a gratuity.
A business that works across two provinces, or sells a soda in one and a sandwich in another, quickly ends up with a spreadsheet nobody trusts.
How Mosey works out the tax on a sale
Each menu item has a type, such as food, soft drink or alcohol, and the type decides which tax applies. A line with no type is taxed at the table rate, which can only over-collect, never under-collect, and Mosey asks you to set the type so it does not have to guess.
The tax is priced line by line and rounded to the cent, and the bill shows each tax by name and rate. A tip is never part of the amount tax is worked out on. A bill that has been priced keeps its tax, so a rate change halfway through service does not move it.
A refund takes back tax in proportion to the amount refunded, and the last refund takes whatever cents are left, so nothing is lost to rounding.
Province by province, where it differs
Mosey carries the differences as rules for each province and each kind of item, and a rule that lowers the tax is only used after it has been checked and confirmed.
- British Columbia: restaurant food carries GST only. Soft drinks, fountain and vending included, carry the 7% provincial sales tax. Alcohol carries 10%. A mandatory gratuity and corkage carry no provincial tax.
- Ontario: HST at 13% on a meal, with the provincial rebate for qualifying prepared food and non-alcoholic drinks taken off at the till, up to $4 a sale. Alcohol is never rebated. A snack counts only beside a qualifying item, and you mark which of your snacks it is.
- Every other province: the rate comes from Stripe Tax for your business address, on the type of item.
- Saskatchewan and Manitoba: sales through Mosey are not available while the provincial rules are worked out.
- Quebec: not available. Quebec requires certified billing for a till, and has French-first rules of its own.
A report for your return
The sales tax report shows your GST/HST number at the top, then totals by tax, with GST, HST and provincial tax named by province. You pick your filing period: monthly, quarterly or annual, starting in any month, as a fiscal year does.
It splits sales, fees you kept and refunds, which show as negatives, and gives two files: one row for each tax line, and the totals. Taxable sales, tax collected, tax refunded and net tax are all there.
Filing and paying with the Canada Revenue Agency stays with you and your accountant. The report is the starting point, not the return.
What Mosey does not claim
Provincial tax rules change, and a few cases need a person to read the rule. Mosey states the rule it follows for each province and each kind of item, and it does not give tax advice. If something matters to your business, ask your accountant to confirm it for your province.
Where the rules differ
Three provinces and one rebate need more than a rate.
- British Columbia
- A soft drink must be classed as one for the 7% provincial tax to apply. An unclassed drink is read as food. Mosey asks a British Columbia business to review its drinks and never classes an item itself.
- Ontario
- The $4 rebate applies to qualifying prepared food and non-alcoholic drinks only. A combination line never qualifies.
- Saskatchewan and Manitoba
- Sales through Mosey are not available while the provincial rules are worked out.
- Quebec
- Not available. Certified billing is required for a till in Quebec.
Rules change. Check any rule that matters to you with your accountant or adviser.
What Mosey is about
Affordable tools for food businesses
Tools priced for independents and small chains, not for the big groups.
A full suite, in one login
The tools a restaurant, café or bar needs sit together, so you are not paying for a stack of separate subscriptions.
You keep more of your revenue
Mosey is built so that more of every sale stays with the business that made it.
Free to list and claim
Your menu, your replies to guests and your photos cost nothing to put on Mosey.
No hidden fees
What Mosey charges is published, in full, so nothing arrives as a surprise on a statement.
Made for local food businesses
Mosey helps diners find independent food businesses by dish and mood, and lets people rate what they actually ate.
Questions owners ask
Does Mosey work out GST and HST for my restaurant?
Yes. It prices the tax on each line from the item type and your province, and shows each tax by name on the bill.
How does Mosey handle British Columbia's provincial tax on soft drinks?
A soft drink you have classed as one carries the 7% tax, alcohol carries 10%, and restaurant food carries none. An unclassed drink is read as food, so classing your drinks matters.
What about Ontario's rebate on prepared food?
Mosey takes the provincial part off qualifying prepared food and non-alcoholic drinks at the till, up to $4 a sale. Alcohol is never rebated.
Is a tip taxed?
No. A tip is never part of the amount tax is worked out on.
Can I get a report for my return?
Yes. Pick monthly, quarterly or annual and a start month, and download the tax lines and the totals as files.
Does Mosey file my GST/HST return?
No. Filing and paying with the Canada Revenue Agency stays with you and your accountant.
Is Quebec covered?
Not at present. Quebec needs certified billing for a till and has its own rules.
Is this tax advice?
No. Ask your accountant to confirm the treatment for your province and your menu.
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