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What is the relationship between HST payable and suspense?

what is the process that QBO Canada follows when I use the Prepare Tax Return? Does it move the amount owed to CRA (or payable back to me)to the suspense account?  If so, then when a payment is made to CRA is then a Transfer sufficient from the checking account to the suspense account?

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Best answer 03-11-2019

Accepted Solutions
QuickBooks Team

Hello there ken, Let me share how HST payable and HST sus...

Hello there ken,

Let me share how HST payable and HST suspense work.

When you set up sales tax, QuickBooks Online automatically adds two default accounts: GST/HST Payable and GST/HST Suspense.

Every transaction created with GST/HST/QST will be added to the GST/HST Payable account. The GST Suspense account should remain at 0 and should balance out. This account will depend on the sales tax filing. It will go up or down depending if it's a refund or a payment. 

When you complete the Sales Tax Return, it creates a two-line Journal Entry that simply moves what you owe (or what is owed to you) from GST/HST Payable to GST/HST Suspense

Filing the return moves the sales tax liability amount from Payable to the Supense account. Recording the sales tax payment will move the amount from Suspense to the bank account. 

Please let me know if you have other GST/HST concerns, I'll be here to answer your queries. Have a great day!

15 Comments
QuickBooks Team

Hello there ken, Let me share how HST payable and HST sus...

Hello there ken,

Let me share how HST payable and HST suspense work.

When you set up sales tax, QuickBooks Online automatically adds two default accounts: GST/HST Payable and GST/HST Suspense.

Every transaction created with GST/HST/QST will be added to the GST/HST Payable account. The GST Suspense account should remain at 0 and should balance out. This account will depend on the sales tax filing. It will go up or down depending if it's a refund or a payment. 

When you complete the Sales Tax Return, it creates a two-line Journal Entry that simply moves what you owe (or what is owed to you) from GST/HST Payable to GST/HST Suspense

Filing the return moves the sales tax liability amount from Payable to the Supense account. Recording the sales tax payment will move the amount from Suspense to the bank account. 

Please let me know if you have other GST/HST concerns, I'll be here to answer your queries. Have a great day!

Not applicable

Thanks.  If I don't use the Sales Tax Return feature for...

Thanks.  If I don't use the Sales Tax Return feature for last quarter HST payable process and just transfer from checking account to the HST Payable account this month....will this mess things up when I do use the Sales Tax Return feature at the end of this 1st quarter 2018?
QuickBooks Team

Hi ken, Yes, it will mess up your account. If you're not...

Hi ken,

Yes, it will mess up your account. If you're not able to use the tax system last year, you can record the expense using any expense accounts other than HST Payable or Suspense.

Here's how to create an expense transaction:

1. Click the Plus sign (+) icon.
2. Click Expense.
3. Fill in the necessary fields.
4. Click Save and close.

Reach out to me if you need something else.
Not applicable

Hi, So when I receive a GST tax refund, this amount appea...

Hi,
So when I receive a GST tax refund, this amount appears in my Bank / For review tab. Should I add it to the GST HST suspense account from there?
Active Member

So..  if I may ask, When I see the HST come out of my ban...

So..  if I may ask, When I see the HST come out of my bank in the "banking" section, what account do I attribute it to when clicking on "Add"?
Active Member

is there a webnair regard filiing sale tax for QBO

is there a webnair regard filiing sale tax for QBO
Active Member

Hi, after filing sales tax. Do i need move GST suspense a...

Hi, after filing sales tax. Do i need move GST suspense account to GST payable?
Experienced Member

As a new user, how do I set up the initial HST amounts (i...

As a new user, how do I set up the initial HST amounts (in this case payable) for y/e 12/31/2018?  Do I just set up the net payable or do I have to separate the HST collected and HST Input Tax Credits?  The default Chart of Accounts doesn't make provision for the two accounts.  I spoke with your tech support but he was not able to give me an accounting answer.  If I set up the payable at year end manually, the CR side of the entry is HST payable.  What's the other side of the entry?  Then when I make the remittance (before Jan. 31) the CR side of the entry will be the bank and the DR will be HST payable.  But that will leave the DR side of the entry to set up the payable with a balance.  How do I get rid of that?
QuickBooks Team

Good question, @rfchaim. It's important that you get the...

Good question, @rfchaim. It's important that you get the best advice possible for your question. I recommend reaching out to an accounting professional to see what the other side of the entry should be and other info. I know a good place to look for an accounting professional. You can simply search for one on our website using just your postal code. Here's the link:

 

https://quickbooks.intuit.com/ca/find-an-accountant/

Keep me posted on what happens. If you've got questions, don't hesitate to ask. I'm here to help.

Frequent Explorer ***

Re: Good question, @rfchaim. It's important that you get the...

I've been following your correspondence - the above link doesn't work.  Would it be possible to send it again?

QuickBooks Team

Re: Good question, @rfchaim. It's important that you get the...

My mistake. I'll go ahead and update the link. :)

Here it is https://quickbooks.intuit.com/ca/find-an-accountant/. Feel free to ask any questions. 

Active Member

GST on a reimbursement

Hello! I am creating a reimbursement in a journal entry. I have the reimbursement set up as a current liability, and the other side of the entry is to freight and delivery and billed to the client. When recording the GST in the reimbursement side of the transaction, is it correct to record that amount separate in the GST payable account?

Thank you for the help.

QuickBooks Team

Re: GST on a reimbursement

Hi there, 

 

Thanks for joining the conversation here in the Community.

 

This is a great accounting question. I'd recommend consulting with a professional accountant to get the best advice on which accounts to record your GST to, as well as the proper structure of your journal entry. If you're not already connected to an accountant, you can find a ProAdvisor in your area here: https://quickbooks.intuit.com/ca/find-an-accountant/.

 

Let me know if you've got questions. 

 

Cheers.

Frequent Explorer *

Re: Hello there ken, Let me share how HST payable and HST sus...

Hi,

I filed 2017 GST return in January (my client was way behind when I took over his books).

QBO automatically post JE to GST Suspense (debit) -$11,400. 

In February we received an assessment that CRA did not allow his ITC and let him pay $4,800 plus penalties.

I recorded his payment under bill - CRA as payee and under account Non-Refundable taxes thereafter penalties. But the GST suspense of -$11,400 is still sitting in this account.  am I going to do an adjustment JE of credit GST suspense and debit  Non Refundable taxes?

I just need confirmation if I'm doing this right.

 

Thanks,

Marg

QuickBooks Team

Re: Hello there ken, Let me share how HST payable and HST sus...

Hello Margarett,

 

Filing your taxes accurately is important for your business. I'll be happy to help with your filings. QuickBooks Online offers an accurate sales tax center where you can keep track of your filings and record payments or refunds. Given the circumstances of your recent interaction with the CRA, I suggest calling our phone support team at 1-855-253-1536 and have one of our specialists take a closer look at your account. Our agents are available Monday to Friday, 9 a.m. to 8 p.m. and Saturday from 9 a.m. to 6 p.m.

 

Let me know if you have any other questions.