HST on a Toronto restaurant bill: what to check on any till

A till is where every sale, refund and end-of-day count happens, and in Ontario it is also where sales tax shows up on every receipt. A good till saves minutes on every transaction and an hour at the end of every day. A poor one costs you both, plus a headache at tax time.

This is general information, not tax advice. Confirm the details with your accountant.

What tax appears on a restaurant bill in Toronto?

Ontario uses the 13 percent Harmonized Sales Tax on restaurant meals, combining the 5 percent federal GST and an 8 percent provincial portion. Menu prices are shown before tax, as is normal across Canada, and the HST is added to the bill. The guide on HST on restaurant meals in Ontario sets out the rate and what it covers.

How does the 4 dollar rebate change a coffee order?

Qualifying prepared food and drinks get an instant point-of-sale rebate of the provincial part when they total 4 dollars or less before tax for one customer at one time, so a cheap coffee is taxed at 5 percent rather than 13. Once the qualifying items go over that total, the full HST applies. The CRA's information sheet GI-064 lists which items qualify, and the guide on the 4 dollar rule at the till walks through examples.

What should you check about tax on any till?

Whatever system you use, confirm with your accountant that:

• HST shows correctly on every receipt, including the small-purchase rebate where it applies
• Your HST registration number appears where it needs to
• Your reports give the totals you need for your HST return

Test a few real orders before you rely on a till, including a coffee under the 4 dollar total and a larger order that goes over it.

What else should a counter till handle?

Taxes are the Ontario part. The rest is what any busy counter needs.

• Lines and modifiers: extra shot, oat milk, no onions
• Custom amounts for anything not on the menu
• Open orders you can start, leave and return to
• Every way of settling: cash with change calculated, cards, and any gift card or voucher you honour

How should a till handle tables and split bills?

Open a table, add rounds through the evening and settle at the end. When the bill comes it should split by item, so each person pays for what they had, or by an equal share of what remains. Toronto tables ask for separate bills constantly, and a till that cannot split cleanly sends servers back to a calculator.

How do you cash up at the end of the day?

A shift opens with a float and closes with a cash count. A mid-shift report shows the day so far without closing anything; an end-of-day report closes it. Expected cash is the float plus cash taken, minus cash refunded, so the count has a clear target. Record any adjustment, and tell the owner when one is made. Refunds should come off the day's order history, so the totals still add up.

What happens when the internet goes down?

Decide before it happens. Some systems keep taking cash and card sales offline and send them up later; others stop. If yours queues sales, find out how it avoids counting a sale twice and what it cannot check offline, such as a gift card balance. Keep a manual fallback: a card terminal that works on its own and a paper pad for orders.

What payment methods do Toronto customers expect?

Interac debit, including tap, is a standard way to pay in Canada, and many visitors are surprised how often it is used. A counter that cannot take it loses sales.

• Interac debit, by tap and by chip and PIN
• Visa, Mastercard and American Express, with tap
• Phone and watch wallets
• Cash, for the customers who still prefer it

Ask your payment provider how each method is priced, since debit and credit usually cost you different amounts. The guide on Interac debit and card payment costs compares them.

How do you test a new till?

Run it alongside the old one on a quiet afternoon. Ring through every kind of sale you make, including a split bill, a refund, a voucher and a small coffee, then cash up both and compare.

More from Toronto: TIFF and big event weekends and selling gift cards.

More in the Canadian guides for food businesses.