Does QBO charge HST on top of the payment processing fees if you accept credit cards with them?

Hi @sweets77,

I am delighted to have you here. 

QuickBooks gives you the flexibility choose between "Zero-rated" which has a 0% rate and "Exempt"  which is non-taxable.

I encourage you to reach out to an accounting professional to see which option best suits your business. If you don't have an accountant no need to worry, we can help. You can go to My Accountant>Find a pro to help to find an accountant in your area.

If you have any questions please feel free to reach out and let us know. We'd be happy to help.

Hi Caroline, 

I'm referring to the actual online payment processor that QBO offers.  They charge their percentage but do they charge HST as well?  The payments are charged to us but I'm just not sure if this includes an HST amount or if it is simply the processing fees and no HST is charged.  

Thanks, 

Sara

Hi Sara,

Thanks for clarifying what you mean with your question about HST on the processing fees for QuickBooks Online Payments. I see why this sort of thing is important to know so that you can factor it into your books and balances, and I'm happy to elaborate.

QuickBooks Online Payments fees are currently the 2.9% + $0.25 per transaction, but there are no sales taxes on those fees, either before or after. It's just that amount straight. So, for instance, if you have a customer transaction of $1,000, the fee to you will be $29.25. Make sense?

For more information about QuickBooks Payments, including information about processing fees, you can check out these links.

• QuickBooks Online Payments
• Intuit Payments Canada Acceptable Use Policy
• Intuit Canada Merchant Agreement

Feel free to drop us another reply if you have further questions or concerns! :)

Does that customer transaction of $1,000 include GST charged to the client?  I'm curious if the merchant service fees are paid based on the total of the transaction, or price of the service without the GST?

For example, if the service is $1,000 + 5% tax = $1,050 charged to the client. Is the merchant service fee the 2.9%+$0.25 of $1,050? Or just $1,000?

Hello Niel87. Glad to have you connect with us here. Just to clarify, the merchant fee is charged on the total of the invoice. This applies on invoice totals with/without taxes. As my colleague pointed above, if the invoice total is $1,000, then the merchant fee is charged based on that invoice total amount. Feel free to ask other questions. I've got your back.