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ken12
Level 1

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?

Solved
Best answer March 11, 2019

Best Answers
Kristine Mae
QuickBooks Team

What is the relationship between HST payable and suspense?

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!

View solution in original post

23 Comments
Kristine Mae
QuickBooks Team

What is the relationship between HST payable and suspense?

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!

View solution in original post

ken12
Level 1

What is the relationship between HST payable and suspense?

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?
Kristine Mae
QuickBooks Team

What is the relationship between HST payable and suspense?

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.
christian3
Level 1

What is the relationship between HST payable and suspense?

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?
Pnoteye
Level 1

What is the relationship between HST payable and suspense?

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"?
tmetcalfe
Level 1

What is the relationship between HST payable and suspense?

is there a webnair regard filiing sale tax for QBO
tmetcalfe
Level 1

What is the relationship between HST payable and suspense?

Hi, after filing sales tax. Do i need move GST suspense account to GST payable?
rfchaim
Level 1

What is the relationship between HST payable and suspense?

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?
JamesM
QuickBooks Team

What is the relationship between HST payable and suspense?

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.

South-Port
Level 1

What is the relationship between HST payable and suspense?

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

JamesM
QuickBooks Team

What is the relationship between HST payable and suspense?

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. 

LethbridgeRefrig
Level 1

What is the relationship between HST payable and suspense?

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.

AddieC
QuickBooks Team

What is the relationship between HST payable and suspense?

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.

margarett
Level 1

What is the relationship between HST payable and suspense?

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

Anonymous
Not applicable

What is the relationship between HST payable and suspense?

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.

gsb06
Level 2

What is the relationship between HST payable and suspense?

Hi, Quick question, so this means that when the payment for GST comes out of the bank and shows in my bank feed, how would I add this transaction? Previous bookkeeper had this amount on GST payable, but since it has been paid should not be a liability. Which Expense Account should I use to record this GST has been paid?. I was thinking credit Bank and debit GST/HST suspense but I am not sure about it.  Of course, the gst return has not being prepared at all for this year in QBO. Thank you so much

JamesM
QuickBooks Team

What is the relationship between HST payable and suspense?

Hi there. I recommend contacting an accounting professional to find out more about which account to record the GST payable. If you're not in contact with one, I encourage you to search for one on our website using this link here. Doing this will help prevent any future discrepancies. Let me know if you have other questions. I'm here to assist. :)

gsb06
Level 2

What is the relationship between HST payable and suspense?

Thank you! but, I got another issue now, I am the new bookkeeper for my client and looks like on the bank statements there was payments for last year taxes. Which Account would I record this expense? thank you so much

CBlue
Level 3

What is the relationship between HST payable and suspense?

This is such a crucial thing about accounting and bookkeeping. There should be clear steps and video tutorials about this.

 

How to record HST/GST payments correctly (whether you use the integrated QB tool to file HST or you send a bank payment to the CRA Canada Revenue Agency.  


Which Chart of Account category to use when and where, etc. 

POSib
Level 1

What is the relationship between HST payable and suspense?

I have manually calculated the GST/HST payable for past couple of years and made the payment to CRA (2018/2019 with penalty and all).

 

How should I show this in my QB and in what account head?

PatriciaT
QuickBooks Team

What is the relationship between HST payable and suspense?

Hi POSib, I know how important it's to keep your books accurate. The Sales Tax Centre in QuickBooks Online helps you prepare precise returns and enable you to record your payment to or refund from the CRA. This article assists you with the entire process: File sales tax

 

When it comes to how to organize your books and which account to select or not, your accountant is the best resource for more information and proper guidance. Whether it's doing a journal entry for your penalty or making an adjustment to your tax return to account for it, your account will be able to figure out the best approach for your business needs. You can easily invite an accountant to your books or find one in your area. Just head to the My Accountant tab to get started, then select Find a pro to help.

 

You're always welcome to stop by if you need anything else.

hair1
Level 1

What is the relationship between HST payable and suspense?

Hi. My HST remittance was a refund of only $1.49. CRA doesn't issue a cheque for under $2.00. My GST suspense account says -1.49 because I will not be getting that amount back. What would my journal entry be to make the suspense account 0 again and write off the $1.49? Thanks!

JamesM4
QuickBooks Team

What is the relationship between HST payable and suspense?

Hi hair1. Glad to have you reach out in the Community. It' vital you're able to enter the right journal entry so your books remain accurate. To ensure accuracy, I recommend reaching out to your accounting professional for expert advice. If you're not in contact with one, I encourage you to search for one on our website using this link here

 

I'll also leave this question open in the community so other members can chime in and share their expert advice. Feel free to ask other questions, I'm here to assist. 

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