Canadian Charities using QBO only. How do you handle HST you pay on invoices.

Yes this is possible, I have setup my client for PSB rebate on Ontario.

It has to be setup in the tax module

Can you tell me how to do it?  I am brand new to QBO and still working on set-up.  Thanks

Very excited to hear your answer as I’m looking for the same instructions. 

Did you get an answer?  Love to here the solution 

Hi NQ77,

Do you offer services with setting up PSB rebates in Ontario? If so, I would need your assistance.

Hello Olabero. Thanks for reaching out to us here. I'll be happy to assist you with achieving your QuickBooks goals. To get started, could you elaborate about what you're looking to accomplish in QuickBooks? 

Hi.  I didnt get the answer here, but did get it done with a phone call to Help.  I didnt write down the steps so dont want to try to repeat it her.  Use the "call back" button and get someone to walk you through it.

Good luck!

Were you able to retain the rebate sales tax portion in the expense account? My bookkeeper set it up so that it's going into a separate account and I'm trying to fix it (unlike in my desktop setup where it was retained in the expense account)

Hi. I did not do the set up my, someone at QB help walked me through it but it took a number of attempts.  It works so that the rebate amount goes to a suspense account and at the end of each month I make an entry to transfer it to the HST Receivable account. The expense portion stays with the invoice expense. 

There is this:

https://intuitglobal.intuit.com/iq/quickbooks/docs/HST_Charity_xONx.pdf

Also, this is helpful ... instructions for M&E tax group rate could be adjusted to match the current year sales tax rebate percentages for charity HST?

https://quickbooks.intuit.com/learn-support/en-ca/help-article/sales-taxes/set-sales-tax-rate-meals-...

This is how I do charity HST in QBO (and also did the same for many years in QB Desktop).  I love this duct tape method because it puts the unrecoverable HST onto the cost of each expense.  So when I pull a report for an event, for example, the actual costs are complete.  I know you can one shot the expense for HST amounts you don't get back when you file semi annually, but I strongly prefer my way.

Set up these tax codes (note these are for Ontario only but the same method will work for any province / territory and you'll just have different percentages - go look at the pdf of the rebate form to see):

   HST Fed portion ITC   2.5%   and make it go to line 106   and say filing frequency semi annual

   HST Prov portion ITC   6.56%   and make this go to line 107 adjustments (trust me)   and say semi annual

   HST unrecoverable   3.94%   and set it to add to the expense instead of going on the sales tax return

                     and say annual filing frequency for this one                         

Then make a sales tax group called something like HST Charity   semi annual filing   and add all three of the above to the group which will total the 13%.

Then it is the group code you use for every expense with HST.

Time to file and you will see the amount for the fed portion on line 106, the amount for the prov portion on line 107 and that's it you are done.  No calculations necessary.

This is a little bit of work to set up but magical from there forward!