What is the effect of zeroing GST on invoice subtotal vs using zero rated tax code? How does that affect ITC balances and net GST payable?

Thanks for reaching out to us about this using GST on invoices, @silverliningsolar.

I can share some insights with the difference between zeroing GST on invoice subtotal and using zero rated tax code. 

When you zero out the tax amount on a sale, the transaction is still recorded as taxable for GST. However, the reported on the tax reports are recorded as 0. For zero-rated entries, the government doesn't tax its sale but you can still claim input tax credits on the expenses that you incur in order to earn the income. 

For example, when you're providing services in Canada, they’re taxable. However, when you work for people in the U. S., they’re zero-rated or taxable at zero percent. 

I'm adding here a list of common sales tax codes and what they are used for.

Please update me if you need further help with this GST concern. I'll be more than happy to help you out.

Further to this...

Which codes would I use for these two scenarios?

1) Zero Rated GST with NO applicable Provincial Tax (British Columbia)     ie: Zero c/w NO PST 0%/0%

2) Zero Rated GST, but WITH applicable Provincial Tax (British Columbia)   ie:  Zero+ PST 0%/7%

According to what I've read on the eTax BC site, Out of country clients SHOULD BE charged PST (except where exempt as in some solar components and labour)

Thanks for this. I realize it may be unique.

 - Rick

 - Sliver Lining Solar

I make purchases from US and need to know how to track those amounts to get the Input credit wile filing the HST report. How will these amounts be reflected in the sales reports for a period automatically when generated?

Hello saviod. Welcome to the QuickBooks Community. I'll be happy to share more info so you're on the right track with acheiveing your QuickBooks goals. In order to accurately record your transactions, I highly recommend consulting an accounting specialist for expert suggestions. This ensures your books remain accurate while you continue to manage your work with peace of mind. You can also get in touch with a professional using this link here. Other accounting professionals are able to see this post in the Community and this will allow them to chime in. In the meantime, feel free to check out the following article that shows you how to: Categorize and match online bank transactions in QuickBooks Online. In the meantime, feel free to ask other questions in the comments below. I'll be on standby.