I am setting QST in QB Desktop Enterprise. Should I put 9.975% on QST tax item or 14.975% on QST item code? If I put 9.975% to QST item code on purchase and sales, does it mean I need to create a standard QST/GST purchase and sale group which includes 5% GST and 9.975% QST in the tax group?
I tried both and test in QST Tax agency report. However, I did not see any 5% GST is shown on the line 103 QC QST report. I only see 9.975% is shown on line 206.
Great question! Making sure your sales tax is set up accurately is essential for keeping your books in balance and your remittances accurate. The awesome thing with QuickBooks Desktop is the program helps you with these provincial and territorial rates as it's configured to pull the correct details for you from the government. I'll show you how it's done.
Rather than setting up the code manually and trying to figure out how to account for the different rates, try these steps instead.
Select Sales Tax from the top menu.
Choose Manage Sales Tax.
Click Change Tax Setup from the right side of the Manage Sales Tax window.
Select Add the provisional sales tax for a different province and click Finish.
Choose QC for Quebec.
Once those steps are complete, you'll have the Quebec sales tax rates added to your books! The program will automatically configure the appropriate sales tax agency since it's a provincial rate and not a custom rate. Learn more about setting up sales tax here: How to set up sales tax in QuickBooks Desktop
You may want to make any custom codes you tried set up inactive so you don't get things mixed up. Here's how to do that.
Go to the Lists menu.
Choose Sales Tax Code List.
Right-click the code you want to make inactive.
Choose Delete Sales Tax Code.
Despite the wording saying "delete," this will only make the sales tax code inactive. You can make it active again at any point should you need it. On the Sales Tax Code List, simply select Include inactive and then right-click to choose to make it active again.
That should get you on your way, but feel free to get in touch with QuickBooks Desktop support if you have any trouble navigating this with the steps you've already taken. Since you're using Enterprise, support fees are included in your subscription, so you won't have to pay anything extra. Learn more about support, including hours and how to get in touch, here: Intuit QuickBooks Desktop software support policies