On the GST/HST return, the first line Sales and Other Revenue is including things that are not taxable like donations and government grants. How do we correct this?

Hi carol-folkeringa,

It's great to see you in Community.  Welcome!  With QuickBooks Online you'll be able to locate what's causing the Sales Tax to be calculating using our Reports feature.  I'd be glad to assist you!

First you'll need to run a report to identify what has Sales Tax applied that shouldn't be.  Here's how:

1. Select Taxes from the left sidebar and hit the Sales Tax tab at the top

2. Over to the right, click on the drop-down arrow for Reports and choose the Taxable Sales Summary

3. Enter the Report Period, Tax Agency and the Accounting Method then Run Report

4. You'll be able to click on any of the transactions to open, review and make any necessary changes.  Don't forget to Save and Close!

That's it!  You're ready to go back to the Sales Tax Centre and prepare the return!

If you have any other questions, or require additional assistance, please feel free to reach back out.  We'd  love to help!

Thank you for the instructions.  When I run the report, it is showing Zero-rated and Exempt purchases and sales as part of Sales and Other Revenue (line 101).  If I click on these, there are numerous transactions listed BUT the tax coding is correct; it just should not be showing up on the Tax Report.  How do I correct these tax codes so that they do not appear on the report?  It is my understanding that Line 101 should only be Taxable sales.

Hi carol-folkeringa.

Pulling the right report for your needs and being able to customize it is one of the great features of QuickBooks Online. Allow me to help you with getting the information you need.

The reason that the Taxable Sales Summary report pulls the tax exempt and zero rated tax codes is due to it using all sales tax codes excluding out of scope. The Taxable Sales Summary is a great report but for your I recommend the Transaction Detail by Tax Code. This one allows you to filter the report to better get the information you need. You can follow the same steps as stated by my colleague but instead just select the Transaction Detail by Tax Code.

If this still doesn't give you everything you wish to see I suggest sending feedback to our development team letting them know. You can follow these steps to send the feedback:

1. Select the Gear icon at the top, then Feedback.
2. Enter your comments or product suggestions. Then select Next to submit feedback.

Once they receive the feedback they'll look for ways to possibly add this in future updates.

Another option is using the out of scope sales tax code if you don't wish them to show up on the report. Before making this change however I recommend speaking to your accountant to make sure the changes don't have a negative impact on your books. If you don't have an accountant no worries, we can help. You can go to My Accountant>Find a pro to help to find one in your area. 

Have a great day!