Filing sales tax is a four part process. First, prepare your sales tax return in QuickBooks Online. Second, submit your return to the Canada Revenue Agency (CRA). Third, close your filing period in QuickBooks Online. Finally, record your payment to or refund from the CRA.
Step 1 - Prepare your return
- Select Taxes from the left menu
- Ensure Sales Tax is shown at the top. (Tip: If you use payroll in QuickBooks Online, you may need to select Sales Tax as opposed to Payroll Tax)
- Next to Sales Tax at the top, find the tax agency associated with the return you'd like to prepare the return for using the drop-down
- On the Returns tab, select Prepare return beside the next return you need to file
- Check the dates populated in the Start date and End date fields Note: QuickBooks Online automatically adds the dates of your most recent sales tax period, based on the payment schedule for the CRA. If necessary, you can change them, but remember that your payment schedule is set by the CRA. You can't change the dates just for your own requirements.
- Review the lines of the sales tax return, with the balance owing (or refund due) at the bottom
- To see individual transactions, select the dollar amount
- To make an adjustment to a line on the sales tax return, select Adjust
Step 2 - Submit your sales tax return online
File your GST/HST return with the CRA
- Before you can submit your GST/HST return online to the CRA, you must have your four-digit access code. The access code is printed on the electronic filing information sheet (Form GST34-3) or the personalized return (Form GST34-2) that you received in the mail.
- In a different window, go to the CRA website listed on the form you received with your four-digit access code.
- Enter your User ID and password.
- Select Submit a return.
- Choose the period that you want to file.
- Copy the amounts from your QuickBooks Online return and paste them into your sales tax return in the CRA window.
- After you fill in the online return, close the CRA window and go back to QuickBooks Online.
File your GST/HST and QST returns with Revenu Québec
- In a different window, go to the Revenu Québec website
- Use the clicSÉQUR service and your clicSÉQUR access code that you received in the mail to complete your online return.
Step 3 - Close your sales tax period in QuickBooks Online
This step closes your books in QuickBooks Online for this filing period. Once completed, you can no longer add or edit transactions for this period.
- On the Prepare Sales Tax return page, select Mark as filed.
- Select Continue.
- QuickBooks Online creates a bill for the amount owing to the CRA. (The bill is created as a payable in your Chart of Accounts, so it won't appear in the Enter Bills window.)
- (Optional) Print a copy of the QuickBooks sales tax return for your own records.
Step 4 - Record a payment to or refund from the CRA
- Choose Filed from the All returns drop-down
- Select Record payment from the drop-down in the Action column.
- Select the appropriate Payment type. Tip: Select Payment if the number is positive and Refund is if the number is negative
- Enter the Payment date, or the date which you paid the CRA or Revenu Québec
- (Optional) Use the Memo to include anything you want to remember about this payment
- Once you make the payment, you'll see it in your Account History under the date you recorded the payment.