inputting HST on imported goods

Hello Dan188,

It sounds to me like you're trying to record a sales tax only transaction. I know that imported goods sometimes fall under these circumstances where they're charged the sales tax amount only at the border and it can be tricky to figure out how to record it when you're not sure. Don't worry, I'll show you how.

1. Select Enter Bills from the Home window.
2. Make sure the Expenses tab is selected.
3. Choose an expense account related to imported goods from the Accounts drop-down.
4. Enter 0.01 in the Amount column.
5. Select the tax code that represents all taxes paid. (In this case, you'll want an HST code.)
6. On a second line, choose the same account as before from the Accounts drop-down.
7. Enter -0.01 in the Amount column.
8. Select the same tax code again.
9. Edit the amount in the sales tax field to match the sales tax charged at customs.
10. Select Save & Close to save the transaction.

Give it a shot! Note that you'll have to create a vendor for customs in order to be able to save the transaction, but you should be good to go with this formula. Make sure to go to the Pay Bills feature to complete the recording of this expense payment as well.

I'm here if you have further questions. Have a great day!

A bit of a windy road, but that works just fine.

I wasn't aware I could change the tax amount (never tried), so that actually makes things simpler as there is another part to this, and that is the brokerage fee. I just change the HST amount on the total invoice.

This does not work for me... it says the tax rate is too high... any other suggestions?

Hi tcpp,

Thanks for joining us here. Having your transactions properly recorded in your account is important, and I want to make sure you're able to.

The approach suggested above by my colleague Laura is the recommended one for reporting sales tax only transactions. If you're unable to complete the necessary steps, I encourage you to reach out to our tech support team so we can have a closer look at your account and help you get back on track. Here's how to reach us.

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All the best to you! 

I understand how you can edit the tax but I don't see the tax amount to edit. Only shows total amount. Therefore I am unable to edit HST for Customs.

Hi Dan

I generally enter these as a journal entry; debit directly the HST payable account and specify line 106 for an input tax credit, and credit either cash or accounts payable as applicable (being sure to specify the supplier eg Canada Customs, FedEx, whoever).

Welcome to this thread, v_wakonig,

I'm glad to see that you've found this thread to work through entering the sales tax paid at customs in QuickBooks Desktop. I want to make sure that you're able to use these steps so that you can be on your way with recording other entries into your books, and I'd be happy to help with this.

With a few more details about what you mean and perhaps even a visual of what you're seeing, I'm confident I can help you get back on track. When you add sales tax to your forms, the program should populate a sales tax section in your subtotal where you can make the changes you need to the sales tax calculation. This is what it should look like.

With what you describe, it sounds like you may have the setting toggled to show only sales tax totals. With this, you should still be able to edit the amount in the total field, but you can double check on this to see if it make a difference with the trouble you're running in to with recording this type of transaction. Here's how to change that toggle.

1. Select Edit from the top menu.
2. Choose Preferences.
3. Click Sales tax from the left menu.
4. Select the Company preferences tab.
5. Uncheck the box Only display tax total on transactions.
6. Click OK to save.

The program will close out all the windows when you do this, so make sure any unfinished work is saved first if it needs to be. After it's changed that setting, you can then go back to try to create the transaction again.

If you happen to be using QuickBooks Online instead, the process requires a minor change to what I mentioned in my original response here. While in my steps in the first response I noted that you can use the same sales tax code for each line. In QuickBooks Online, if you do this, it removes the option of being able to edit the sales tax figure. Instead, you'll want to use a different sales tax code, such as Out of Scope, as suggested in our How to record a sales tax expense on imported goods article.

That being said to, I recommend connecting with an accountant to determine which sales tax codes you should be using if you're not sure. For QuickBooks Desktop, you can use the Find an Accountant website to see the database of QuickBooks-savvy accountants near you. For QuickBooks Online, use the My Accountant tab to connect with your accountant by inviting them as a user via the email invite field or use the Find a pro to help button to see the database I just mentioned.

If you're still having trouble, feel free to elaborate in a response and share screenshots. I recommend sharing any screenshots or images you have by inserting them in the body of your message, which you can do by selecting the image icon in the menu bar above the textbox.

Wishing you the best!

Hi,

 I DON'T see any HST code to select. I don't see any easy or any way to record the lump sum GST payments in QuickBooks anywhere. 

Hello Shay59. Thanks for chiming in on this thread. I'd like to make sure I'm on the same page as you so I can provide the support that you need. To get started, are you using QuickBooks Online, Desktop, or Self-Employed? 

Hi, Thank you for replying. Yes, it is Quickbooks. Our Company moved to Quickbooks last year from Xero. Now, IN Xero I got the BAS page ready to post. But it let me edit the values IN THERE. To confirm; we pay GST ON our goods from China once they port to Australia. So these GST amounts we pay must be added to the BAS.
I set up a separate account for this, and then I know to add this account $$$ to the GST account that is set up that sums up FOR the BAS. Shay... IN Quickbooks I can not see a quick fix for this. I thought I could make a GST value at 100% as that would fix it. But that can not be edited. Shay

Hi Shay. Thanks for elaborating. Could you confirm if you're using QuickBooks Online, Desktop, or Self-Employed? Knowing this info helps make sure we're both on the same page. I'll be on standby. 

QuickBooks online.. A company we are.

Perfect. To make sure I'm on the same page as you, on which screen are you unable to see the HST code to select? 

Thank you for this detailed steps please if you don't mind I'm in the same situation I got a an asset from China and DHL sent me a bill I paid it using Credit Card.

I followed your steps but I'm stuck at this "Choose an expense account related to imported goods from the Accounts drop-down."

I do not know what account you mean by this? which one I should be selecting...

Should it be fine if I add these in the ITEMS tab of the BILL window? although the amount matches the bill but I do not know which account would be affected.

Please Help me and check the photos attached.

Thank you! 

Hi MGElement, 

Thanks for reaching out here.  It's great to see all of the wonderful guidance posted in this thread to assist with inputting HST on imported goods.  To ensure you're recording the transaction to the correct account, I suggest speaking with your accountant.  If you don't have one, we can help you locate a ProAdvisor in your local area.

Feel free to ask other questions.  We'd be glad to assist!

Thank you for your help. 

I'm just learning things as a real-life situation. 

The issue is Accountants charge very high fees (very hard to see someone good and reasonable price).

I'm looking for a mentor accountant with reasonable charges.

For sure I would reach out at this point.

Thanks!