Level 1

HST/GST charge on sales from Ontario to BC

Hi 

I have two questions:

1. If I am a business registered in Ontario who provided services to a customer in BC should have I charged HST 13% or only GST of 5%? 

2. If the answer to Q1 is only GST of 5%- how I can add that code to my list of Taxes- I do not see it being available .

Thanks

Anna

QuickBooks Team

Taxes

Hi there Anna and welcome to the Community!

 

When making sales inter-provincially, it's important to to select the correct sales tax codes. QuickBooks Online makes it easy to account for sales tax from anywhere in Canada, and I'd be happy to show you how.

 

When it comes to determining the appropriate sales tax code, the CRA and the Government of British Columbia are your best resources. The tax code you select is based on the province that your customer resides in, rather than where your company is based. In this situation, British Columbia does things a little differently, so depending on what services you're providing, the amount of tax you charge might vary. Here are a couple links that I know will point you in the right direction:

 

 

In order to select the appropriate tax codes for your customer it's important that you've set up the codes in the Tax Centre. Here's how you can set up additional tax codes in QuickBooks Online:

 

  1. Navigate to the Taxes tab from the left menu.
  2. Within the Sales Tax page, select Manage sales tax from the upper right corner.
  3. Click Add tax.
  4. To Start tracking in a new province click the corresponding green Add button.
  5. Choose the province or territory from the dropdown menu.
  6. If required, enter your filing information for the province's tax agency.
  7. Click Add.

 

Since your customer is in British Columbia, you'll need to add the tax code and agency for the BC Ministry of Finance. Once complete you'll see new codes for GST/PST BC which represents the combined provincial and federal tax, and just PST BC which is provincial sales tax only. You'll be able to select these codes on transactions you enter going forward.

 

You'll be ready to collect and remit taxes from across the country in no time!

Level 1

Taxes

We are not required to register for Provincial sales tax in BC/QC.  But do collect the 5% GST on sales to those provinces. How do I set up a GST only tax code

QuickBooks Team

Taxes

Hi cmm5, I know how important it's to have every sales tax code needed to run your business. QuickBooks Online gives you the flexibility to set up additional rates under your sales tax agency. Here's how.

  1. Go to the Taxes menu, then Sales tax.
  2. Within the Sales Tax page, select Manage sales tax from the upper right corner.
  3. Locate the sales tax agency you wish to add the new rate for and select Add custom rate.
  4. Complete the setup, and when ready, click Add to confirm.

In case you're unsure of which account or line to select for your tax rate, I encourage you to reach out to your tax agency or accountant to make sure everything's lining up correctly in your books. You can easily invite an accountant to your account or find one in your area. Just head to the My Accountant tab to get started, then select Find a pro to help.

 

I hope this helps! You're always welcome to stop by if you need anything else.