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Dan188
January 26, 2020
Question

inputting HST on imported goods

  • January 26, 2020
  • 17 replies
  • 30 views

I often have items coming into Canada that are not charged. But customs charges HST on the declared value. These could be warranty parts, items for service or returning items.

I am not charged, but HST is charged by customs. How do I input these into Quickbooks so it shows up as HST paid/payable?

 

 

17 replies

LauraAB
Level 8
January 27, 2020

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!

tcpp
September 7, 2020

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

PatriciaT
PatriciaT
September 7, 2020

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.

 

Phone and Chat: Click Contact Us to learn how to reach phone and chat support.

Schedule a Callback: click (?)Help in the upper right > click Contact Us > explain your situation > click Let's Talk > choose Get a callback (Note: Callback hours are the same as regular phone hours.)

Social Media: Facebook, Twitter, and Instagram from Monday to Friday between 9 a.m. and 8 p.m. ET

 

All the best to you! 

LeithG
LeithG
Level 2
March 19, 2021

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).

 

 

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