I wish to create two GST accounts. One for tracking the GST collected on sales and one for tracking the GST paid. This is to make it easier to report to CRA

elaineosland · ‎April 29, 2019

Anonymous · ‎April 29, 2019

Hello Elaine,

It's a great idea to stay on top of your sales taxes. The good news is, QuickBooks Online automatically tracks the taxes on sales and purchases so you can file your returns accurately when the time comes. If you wish to add a custom sales tax rate for an existing sales tax agency, you can do so in a few easy steps.

Here's how to add a custom sales tax rate for an existing sales tax agency:

Select Taxes from the left menu
Select the Sales Tax tab
Select Manage sales tax
Locate the sales tax agency you wish to add the new rate for
Select Add rate
Type the Tax name
Select if you collect this tax on sales or you pay it on purchases
Select Add

Check this community article to know more about how to set up a new sales tax code.

Let me know if you have any other questions.

Michels · ‎October 08, 2020

I don't think this answered the question.

I also want to have my GST collected go to one account, and my GST paid into a separate account. This makes is MUCH easier to review and identify any issues. Is there any way to have revenue invoices automatically put GST collected into a "collected" account, and expenses put GST paid into a "paid" account? Seems like this should be an obvious/necessary/standard feature of a Canadian accounting program, but I can't figure out how to do it.

PatriciaT · ‎October 08, 2020

Hi Michels,

I know how important it is to have a perfect tracking system for your sales taxes. I'll be happy to share more about the Sales Tax Centre and how it works in QuickBooks Online.

After you turn on sales tax in the system, QuickBooks automatically creates the GST/HST-QST Payable account to keep track of all sales taxes you collect and pay. This process is designed to ensure accuracy across your sales tax returns and remittances. All you have to do at this point is selecting the correct tax code for your transactions, and QuickBooks takes care of the rest. In the GST/HST-QST Detail Report, you can view the precise tax amount that the system was able to automatically associate to lines 103 (for your sales), 106 (for your purchases), as well as corresponding tax codes.

Using an account other than the GST/HST-QST Payable implies that you'd have to do this tracking manually, and your transactions will not be synced with the Sales Tax Center to help you file accurate returns. If you want to do a manual tracking of your sales taxes, you can use a journal entry to transfer the amounts from the GST/HST-QST Payable account to another account of your choice. Since this is not a recommended practice, I encourage you to talk to your accountant to assist you with these entries if you decide to take this route. In case you don't have an accountant, you can find one on our Find-a-Pro Advisor website

Here are some articles to assist you with creating journal entries and/or running reports in QuickBooks Online if needed.

I hope this helps! Feel free to stop by anytime if you have other questions.

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I wish to create two GST accounts. One for tracking the GST collected on sales and one for tracking the GST paid. This is to make it easier to report to CRA