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How do i record a GST/HST payment owed to the CRA due to a re-assessment?

I was re-assessed by the CRA and due to some expenses made we are not able to claim I know need to pay back GST/HST  to the CRA.  When i try to to record it in quick books as paying Revenue Canada and the expense being GST/HST Quick books tell me I can not do that as it will adjust my GST/HST account.  How do i record this with out changing my year end GST/HST.

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Best answer 03-11-2019

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Established Community Backer **

You do not use the GST Liability account to record this t...

You do not use the GST Liability account to record this transaction. Instead, create an Expense type account in your COA called Non-Refundable Taxes (or something that makes sense to you. Now use the Write Cheques function, payable to Receiver General,  Non-Refundable Taxes as the account, enter the amount without a Tax Code. This method will not alter the GST Payable account.

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Established Community Backer **

You do not use the GST Liability account to record this t...

You do not use the GST Liability account to record this transaction. Instead, create an Expense type account in your COA called Non-Refundable Taxes (or something that makes sense to you. Now use the Write Cheques function, payable to Receiver General,  Non-Refundable Taxes as the account, enter the amount without a Tax Code. This method will not alter the GST Payable account.

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Thanks for your help.. I created the new expense account...

Thanks for your help.. I created the new expense account and completed the transaction.
Established Community Backer **

You're Welcome!

You're Welcome!
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I've had the same problem. However, I can now claim the t...

I've had the same problem. However, I can now claim the taxes again in a later HST period. How do I record what was "Non-Refundable Taxes" so that it decreases the HST I pay in this new period?
Established Community Backer **

Non-Refundable means you do not get it back - now or in a...

Non-Refundable means you do not get it back - now or in a later Tax period. Generally, using Tax Codes in transactions increases or decreases the Tax in any given Tax Period. If the transaction has been recorded using an appropriate tax code, it has already affected the Tax Return and there is nothing to claim. If this is not what has happened, you can use the Adjust Liability function to reduce the Liability account.

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Ok...so this thread so the closest I could find to my ori...

Ok...so this thread so the closest I could find to my original situation. We were re-assessed by the CRA and the HST was deemed un-claimable and therefore we had to pay them back for it. However, since we had not completed the adjusting entry yet nor made any payment, we are now in a situation where we can re-claim what was deemed un-claimable. The original entry for the HST is in a previous filing, how to do we re-claim the HST for this current period? I hope that made sense.
Established Community Backer **

So.... did you only remit the GST Return (the one that wa...

So.... did you only remit the GST Return (the one that was reassessed) without payment? If this is the case, then pay the entire amount due. There is nothing more to do. 

If you did pay what was owed on the original return, create a Bill Credit using Receiver General as the Vendor and select your GST Liability account under the Account tab (not the Item) on the Bill Credit. Do NOT use a tax code.Next time you file your GST return, file it in QB first. Make sure you select Enter a bill to pay later (Not sure what the exact wording of the popup is). Now, go to Pay Bills, select Receiver General and apply the Bill Credit to reduce the payment.

Now, you can file the Payment with the CRA and pay the reduced amount.

Community Explorer **

Re: You do not use the GST Liability account to record this t...

I am reading reply on this question . what does COA stand for 

QuickBooks Team

Re: You do not use the GST Liability account to record this t...

Hi there, 

 

Thanks for reaching out. I'd be happy to answer any questions you may have.

 

COA stands for Chart of Accounts. If you've got any other questions, don't hesitate to ask. I'm here to help. :) 

Not applicable

Re: You do not use the GST Liability account to record this t...

Hi,

My situation is related... I entered all of 2018 activity as journal entries, and, maybe this is my big mistake, I entered all the GST/HST manually as a separate journal line entry in each transaction. Also, I had an accountant set up my chart of accounts and I have 2 accounts for GST/HST, one is named GST/HST Payable and the other is named HST/GST payable. I think I've used them interchangeably in the manual journal entries. 

Anyway, I pulled a report on both the above mentioned accounts for each quarter that I had to submit the taxes for, and calculated the amounts and paid them - in January 2019. 

Now my bank account is linked and my tax information is updated as well (as of January 2019). 

So my question is, how do I record the taxes I paid, which are recorded in the 2 accounts mentioned above, but not showing up in the tax section of QBO, I'm guessing because that was not set up previously, or is it because I manually recorded the taxes paid/collected?

I hope what I'm saying makes sense!

QuickBooks Team

Re: You do not use the GST Liability account to record this t...

Hello Elchi!

 

You have a special situation since you used journal entries and you have two GST accounts. I would encourage you to contact our phone agents instead so that they can thoroughly guide you in recording your payment while they have visuals on your record. They can do a screen sharing to guide you through the process.

  1. Click on Help and choose Contact us.
  2. Enter a short detail of this situation and click on Continue.
  3. Click the Get phone number button.

You can always visit us back here if you have other questions.

Frequent Explorer *

Re: You do not use the GST Liability account to record this t...

Chart of Accounts

Frequent Explorer *

Re: You do not use the GST Liability account to record this t...

Hi,

 

Does this steps same with having a GST Suspense (debit) but CRA reassessed our GST and instead of having a refund of $11,000, they let us pay $4,800. So now I have GST Suspense sitting on the debit side because QBO automatically recorded that after I filed.

 

Thanks,

Marj