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GST Receivable

I run a non-profit. We don't charge any sales tax, but we are eligible for a 50% rebate on GST paid to vendors.

 

1) How do I record GST paid when I enter bills when I don't have the sales tax turned on. (Turning on sales tax seems to create a GST Payable account, which I don't want.)

2) I have a GST Receivable account in my chart of accounts. How do I get 50% of GST paid on bills to show up in this account when I pay bills?

 

Thanks

Solved
Best answer July 08, 2020

Best Answers
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QuickBooks Team

GST Receivable

Hi NWLF,

 

Thanks for joining us! Being able to accurately track and manage your taxes is vital in the running of your business. QuickBooks Desktop is designed with a powerful sales tax centre (STC) which consists of numerous features to assist every business type and need. I'll be happy to share more on this and how you can easily record and track your 50% rebate on your GST purchases. 

 

After turning on the sales tax feature in your account, QuickBooks automatically set-up a GST/HST payable account to help you keep track of all sales tax you collect and/or pay. You can certainly change the name of this account if you'd like but the settings should remain the same to ensure proper tracking. The STC provides a variety of tax codes that you can apply to your sales and purchases. An out-of-scope tax code, for example, can be used for non-taxable goods and services. To learn more on common sales tax codes included in the tax centre and how to use them, check out this article: How to set up sales tax in QuickBooks Desktop

 

When it comes to business purchases eligible for a rebate, doing a manual tracking in the system can be extremely tedious and tricky. I encourage you to reach out to your accountant if you'd like to do it that way, to ensure every transaction is properly recorded. The good news is, you can set-up a tax code in the STC which tracks the portion of GST that can't be claimed and the portion of the GST that is claimable on the GST Return. This tax code can then be assigned to your expense account so the code automatically applies to all related transactions. To learn how to do that, I recommend going through the steps in this article which follows the same principle: Set up sales tax to track meals and entertainment expenses

 

In case you need assistance with this, feel free to reach out our tech support team and one of our experts will be happy to help. Here's how to get in touch. 

 

Call 1-877-772-9158. You can learn more about support hours and policies here: Intuit QuickBooks Desktop software support policies

 

 

 

 

 

 

View solution in original post

1 Comment
Highlighted
QuickBooks Team

GST Receivable

Hi NWLF,

 

Thanks for joining us! Being able to accurately track and manage your taxes is vital in the running of your business. QuickBooks Desktop is designed with a powerful sales tax centre (STC) which consists of numerous features to assist every business type and need. I'll be happy to share more on this and how you can easily record and track your 50% rebate on your GST purchases. 

 

After turning on the sales tax feature in your account, QuickBooks automatically set-up a GST/HST payable account to help you keep track of all sales tax you collect and/or pay. You can certainly change the name of this account if you'd like but the settings should remain the same to ensure proper tracking. The STC provides a variety of tax codes that you can apply to your sales and purchases. An out-of-scope tax code, for example, can be used for non-taxable goods and services. To learn more on common sales tax codes included in the tax centre and how to use them, check out this article: How to set up sales tax in QuickBooks Desktop

 

When it comes to business purchases eligible for a rebate, doing a manual tracking in the system can be extremely tedious and tricky. I encourage you to reach out to your accountant if you'd like to do it that way, to ensure every transaction is properly recorded. The good news is, you can set-up a tax code in the STC which tracks the portion of GST that can't be claimed and the portion of the GST that is claimable on the GST Return. This tax code can then be assigned to your expense account so the code automatically applies to all related transactions. To learn how to do that, I recommend going through the steps in this article which follows the same principle: Set up sales tax to track meals and entertainment expenses

 

In case you need assistance with this, feel free to reach out our tech support team and one of our experts will be happy to help. Here's how to get in touch. 

 

Call 1-877-772-9158. You can learn more about support hours and policies here: Intuit QuickBooks Desktop software support policies

 

 

 

 

 

 

View solution in original post