The CRA looks first at whether the tax you collected matches what you remitted. If an invoice line has no tax, that amount shows in no report your system produces.
You would have to calculate and reconcile it by hand, usually at the worst possible time.
This post is part of our guide to keeping CRA-ready records.
Free: the Invoice and Tax Records Checklist. The weekly, monthly and year-end checks that turn tax time into an export, not a rebuild. Get the checklist
What a missing tax line costs you
A wrong or missing tax means your collected totals do not match what you remit. Fixing it afterwards is slow, and it can mean amended filings.
Why tax gets missed
Rates are applied from memory on each invoice, new products are added without a default, and nobody checks the summary before sending. Set the rate once and the system applies it every time.
The process: five steps to get tax right every time
1. Confirm your tax rates exist
Go to Invoicing, then Configuration, then Taxes. Most Canadian businesses need HST at the provincial rate (15% in Nova Scotia, New Brunswick, PEI and Newfoundland; 13% in Ontario), or GST at 5% in provinces with a separate PST (BC, Saskatchewan, Manitoba, Quebec).
Example: “HST 15%, type Sales, computed as percentage of price.”
Pro tip: Create a Sales and a Purchase version. Records are reusable on every invoice.
2. Set the default tax on every product or service
Under Invoicing, then Products, open a product and add the tax in Customer Taxes. For items you buy often, set Vendor Taxes too.
Example: “Service call: Customer Tax HST 15%.”
Pro tip: Do the whole product list once. It saves you from remembering on each invoice.
Free: the Invoice and Tax Records Checklist. The weekly, monthly and year-end checks that turn tax time into an export, not a rebuild. Get the checklist
3. Check the Taxes column on one-off lines
If a product has no default, select the tax on the line itself. If the column is hidden, use the column selector at the right of the header.
Example: “Delivery fee line, HST 15% selected.”
Pro tip: Check every line before confirming.
4. Read the tax summary before you confirm
At the bottom of the invoice, check the tax name, taxable base and tax amount. A taxable line with an empty or $0.00 summary means a tax is missing.
Example: “Base 1,000, HST 150.”
Pro tip: If the summary looks wrong, stop and find the line.
5. Review the Tax Report each quarter
Go to Invoicing, then Reporting, then Tax Report, and filter to your reporting period. It shows tax collected on sales and tax paid on bills.
Example: “Q3: collected 4,800, paid 1,900.”
Pro tip: Do it before you remit, not after.
Where this runs
The same checks apply to any invoicing tool. In Odoo Community, the Tax Report gives your accountant the numbers they need, but it is not a pre-filled government return. Automatic return worksheets, lock dates for prior-period records and full multi-currency tax handling are Enterprise features, and what Community includes is enough for most small businesses to track taxes collected and paid. The process is the point. The tool just keeps it going when you are busy.
Your next step
Tax rates and filing requirements vary by province and business type. This post describes a record-keeping process. It is not accounting or tax advice. Confirm your filing requirements, eligible deductions and GST/HST obligations with your accountant or the CRA directly. If you want to test this setup in a live system, the free 7-Day Growth Challenge on invoicing gives you full access to the Invoicing module.
Free: the Invoice and Tax Records Checklist. The weekly, monthly and year-end checks that turn tax time into an export, not a rebuild. Get the checklist