cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 2

Sales Tax Installment

Hi there,  I am hoping someone can assist me. With the COVID-19 the CRA is allowing businesses to defer the GST, etc.  Our Yr end is Dec 31 and we file annually the end of March.  We were going to defer but have decided to make an installment  for now.  This is our 2nd yr and have never had to do an installment for GST sale taxes so unsure. We are using Desktop Pro 2018 and I am still getting familiar with it .  I do have the line 110 already setup if this helps.  Any assistance would be greatly appreciated.  

Thank you in advance.

 

Connie

Solved
Best answer April 01, 2020

Best Answers
Highlighted
Level 7

Sales Tax Installment

Hey Connie,

 

I'm happy to see you're taking a proactive approach in making sure tax instalments are recorded correctly. With incredible time saving potential, sales tax tracking is one of the most powerful features in QuickBooks. The key to unlocking all these benefits is to enter your transactions accurately. I can guide you through this.

 

If you don't already have an instalment item created, you can set one up in just a few easy steps:

  1. Select Lists then Item List.
  2. Click the Item drop-down and choose New.
  3. From the Type drop-down list, choose Sales Tax Item.
  4. In the Description field, type a name that connects this account with instalments for a specific sales tax (such as "HST Instalments").
  5. In the Tax Agency field, choose the tax agency you'll pay instalments to.
  6. In the Sales Tax Line field, choose the instalment tax line (such as Line 110 for the GST/HST).
  7. Click OK to create the new account.

Once this item is set up, it's just a couple simple steps to record a payment:

  1. From the Banking menu, choose Write Cheques.

  2. In the Bank Account field, choose the chequing account you use to pay this sales tax liability.

  3. In the Pay to the Order of field, choose the vendor you pay this tax to (such as the Receiver General for the GST). QuickBooks may warn you that you are creating a cheque for a sales tax vendor. Click OK to continue.

  4. Enter your account number with this tax vendor in the Memo field (such as your Business Number for the GST).

  5. Select the Items tab below the cheque.

  6. In the first blank line, select the Instalment item you use to record instalments for this sales tax.

  7. In the Net Amount column, enter the amount of this instalment payment. Note: do not assign a tax code or a customer:job to the payment.

  8. Save the cheque, then print it as you normally would.

To learn about this, there's a handy article in-product filled with additional details. Simply press F1 in your QuickBooks Desktop company file and search for Pay sales tax liabilities by instalments.

 

Let me know how this goes! I'm confident you'll be all set to enter these in your books.

View solution in original post

Highlighted
QuickBooks Team

Sales Tax Installment

Hello Calgarygirl! These are great followup questions and I'm happy to help you make sure you're continuing on the right track.

 

Don't worry about not writing a cheque outside of the program in this instance. The cheque transaction type is simply an easy method to record this sort of transaction in the program. If you're using e-transfer or some other form of payment to make the instalment to the government, you can enter something like EFT in the No. field.

 

I appreciate the screenshot of what you're seeing. In this case, you'll want to uncheck the Print Later box in the menu bar of the cheque transaction; this is located beside the Print button. Once you've unchecked that, you'll be able to enter a number or other reference in the No. field.

 

Whether you add more information or details to the memo line on the cheque transaction in the program is up to you. It's a reference point for you on the transaction to help keep details about the instalment together.

 

Taking the steps André outlined will record the instalments in your books. You don't need to create other credits. If you're looking for what details to fill out on the government form specifically, I recommend checking in with the CRA to see what they're looking for. This CRA article may help you get started: Remit (pay) the GST/HST by instalments

 

When it comes to applying the payments to the sales tax filing later, I recommend pulling up the in-product article André mentioned. That article has a section that explains how to record the instalments in a sales tax return which should get you on track with applying it in your books. To flesh out the instructions André left for finding this article, after pressing F1, you can click the Help tab, then the Search button. This will bring up the search bar where you can enter the title he left you.

 

Take a look at that and let us know if you have further questions!

View solution in original post

5 Comments
Highlighted
Level 7

Sales Tax Installment

Hey Connie,

 

I'm happy to see you're taking a proactive approach in making sure tax instalments are recorded correctly. With incredible time saving potential, sales tax tracking is one of the most powerful features in QuickBooks. The key to unlocking all these benefits is to enter your transactions accurately. I can guide you through this.

 

If you don't already have an instalment item created, you can set one up in just a few easy steps:

  1. Select Lists then Item List.
  2. Click the Item drop-down and choose New.
  3. From the Type drop-down list, choose Sales Tax Item.
  4. In the Description field, type a name that connects this account with instalments for a specific sales tax (such as "HST Instalments").
  5. In the Tax Agency field, choose the tax agency you'll pay instalments to.
  6. In the Sales Tax Line field, choose the instalment tax line (such as Line 110 for the GST/HST).
  7. Click OK to create the new account.

Once this item is set up, it's just a couple simple steps to record a payment:

  1. From the Banking menu, choose Write Cheques.

  2. In the Bank Account field, choose the chequing account you use to pay this sales tax liability.

  3. In the Pay to the Order of field, choose the vendor you pay this tax to (such as the Receiver General for the GST). QuickBooks may warn you that you are creating a cheque for a sales tax vendor. Click OK to continue.

  4. Enter your account number with this tax vendor in the Memo field (such as your Business Number for the GST).

  5. Select the Items tab below the cheque.

  6. In the first blank line, select the Instalment item you use to record instalments for this sales tax.

  7. In the Net Amount column, enter the amount of this instalment payment. Note: do not assign a tax code or a customer:job to the payment.

  8. Save the cheque, then print it as you normally would.

To learn about this, there's a handy article in-product filled with additional details. Simply press F1 in your QuickBooks Desktop company file and search for Pay sales tax liabilities by instalments.

 

Let me know how this goes! I'm confident you'll be all set to enter these in your books.

View solution in original post

Highlighted
Level 2

Sales Tax Installment

Hi Andre,

Thank you for replying back to me.  I do have a couple questions, I have attached the pic.  We don't currently write cheques so there is no number, is this a problem and I don't enter the amount except down on the Item area?  Other than adding the GST # in the memo area is that all I do here?  So, when I submit my instalment to CRA on the GST34 form since I haven't done an instalment before, do you know if I just go down to Other Credits and enter instalments/other annual filer payments on line 110 only? I don't need to enter the Sales/Revenue line 101 or the GST line 105/ITC line 108.

Thank you in advance :)

Connie

 

Highlighted
QuickBooks Team

Sales Tax Installment

Hello Calgarygirl! These are great followup questions and I'm happy to help you make sure you're continuing on the right track.

 

Don't worry about not writing a cheque outside of the program in this instance. The cheque transaction type is simply an easy method to record this sort of transaction in the program. If you're using e-transfer or some other form of payment to make the instalment to the government, you can enter something like EFT in the No. field.

 

I appreciate the screenshot of what you're seeing. In this case, you'll want to uncheck the Print Later box in the menu bar of the cheque transaction; this is located beside the Print button. Once you've unchecked that, you'll be able to enter a number or other reference in the No. field.

 

Whether you add more information or details to the memo line on the cheque transaction in the program is up to you. It's a reference point for you on the transaction to help keep details about the instalment together.

 

Taking the steps André outlined will record the instalments in your books. You don't need to create other credits. If you're looking for what details to fill out on the government form specifically, I recommend checking in with the CRA to see what they're looking for. This CRA article may help you get started: Remit (pay) the GST/HST by instalments

 

When it comes to applying the payments to the sales tax filing later, I recommend pulling up the in-product article André mentioned. That article has a section that explains how to record the instalments in a sales tax return which should get you on track with applying it in your books. To flesh out the instructions André left for finding this article, after pressing F1, you can click the Help tab, then the Search button. This will bring up the search bar where you can enter the title he left you.

 

Take a look at that and let us know if you have further questions!

View solution in original post

Highlighted
Level 2

Sales Tax Installment

Thank you Laura for replying.  I have filed the instalment.  Really appreciate the help!

Have a great day and stay well!

 

Connie

Highlighted
QuickBooks Team

Sales Tax Installment

You're welcome, Connie! I'm glad to hear that it's worked out. :) I hope you're staying well, too. Enjoy your Wednesday. :)