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QuickBooksHelp
Intuit

Create or delete a GST adjustment

Learn how to adjust your GST due if you use Automated GST in QuickBooks Online.

With Automated GST, it’s easy to keep your GST records accurate. If you received a tax credit, discount, or fine, you can adjust the GST you owe. This way you don’t have to worry about making corrections when it’s time to file.

Here’s how to add or delete a GST adjustment in QuickBooks Online.

Add a GST adjustment

Step 1: Set up an account for GST adjustment

It’s important to use the correct account type when adjusting GST. Set up an expense account if you need to increase your GST due, or an income account if you need to decrease.

Note: If you already have these accounts, move on to creating the adjustment in Step 2.

  1. Select the Gear icon at the top, then choose Chart of Accounts.
  2. Select New at the top right.
  3. From the Account Type drop-down, select Revenue or Expenses.
    • If you need to decrease your GST due, set up an income account.
    • If you need to increase your GST due, set up an expense account.
  4. Select the account’s Detail Type.
    • Use Sales of Product Revenue for an income account.
    • Use Taxes Paid for an expense account.
  5. Name your adjustment account (for example, “GST due increase”).
  6. Select Save and Close.

Step 2: Add an adjustment

  1. Select Taxes from the left menu.
  2. Find the tax period you need to adjust, then select Prepare return.
  3. Select Adjust against the entry to be adjusted.
  4. Select the Adjustment date and the Tax rate.
  5. Select the Adjustment account for adjusting GST.
    • Choose an expense account if you need to increase the tax due.
    • Choose a revenue account if you need to decrease the tax due.
  6. Enter the Adjustment amount.
  7. Enter notes in Memo, then select Save.

Delete a GST adjustment

You can also remove an incorrect GST due adjustment. After deleting the adjustment, you’ll no longer see it when you review your GST return on the Taxes screen.

  1. Select the Gear icon at the top, then choose Chart of Accounts.
  2. Find the income or expense account you used to add an adjustment.
  3. Select Run report. Note: If the report appears blank, make sure you've selected the correct Report period and run the report again.
  4. Select the adjustment you need to delete.
  5. Select Delete.
  6. Select Yes to confirm.

Learn more

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