Filing Sales Tax in QuickBooks

Posted by on Feb 15, 2011 in Sales Tax | 10 comments

Continuing on with Managing your Sales Tax in QuickBooks, you have four ways to find out the amount of your sales tax liability, so that you can file your sales tax.

You can use:

  • The Tax Agency Report (from the Menu Bar/Reports/Sales Tax/Tax Agency Report
  • The Sales Tax Payable register (GST or PST)
  • Also from the Menu Bar/Sales Tax/File Sales Tax
  • Menu Bar/Reports/Vendors & Payables/Tax Agency Report

We are going to use the first one in the above list – Reports/Sales Tax/Tax Agency Report. We are also going to assume that the filings are done quarterly and that this particular filing is from January 1 to March 31, 2011. You would have 30 days, or until the end of April, before you would have to remit this report and any amounts due.

Using the sample company that was created at the beginning of this series, you will need to include the following information in these steps.

You will have seen, or should I say, you should be in the Tax Agency Report screen. Working through the fields from the top left of your screen you will see Tax Agency and a drop down window in which you will choose Receiver General. Tab to the Dates field and using once again the drop down window choose This Sales Tax Quarter.

Once you choose this, the From field should have 01/01/2011 in it and the To field 03/31/2011. Along with those dates, all the information that you have entered through this three month period will also show up

From Line 101 you will see the Sales and other revenue  2,098.00, Line 103 – GST/HST collected or collectible  178.20, Line 105 – Total GST/HST and adjustments for period  178.20.

Line 106 – Input tax credits (ITCs) 51.91, Line 108 – Total ITCs and adjustments  51.91.

Line 109 – Net tax  126.29

Line 113A – Balance  126.29 and

Line 113C – Balance  126.29

This return will have all the same line information as a CRA GST34-2 E paper form.

At the top left of the screen that you are currently in (Tax Agency Report) you will see a File Tax Return tab which you need to click on. This will take you to the File Sales Tax screen which will show you the same information that you saw on the Tax Agency Report screen.

On the right hand side of this screen is a Print Return tab which you select to print, so that you have a paper copy of the amounts that were generated. At the bottom left of your screen should be a green check mark with the words Your sales tax return is ready to file. So having seen that, click on the tab near the bottom right of your screen that says File Return.

A new information box will pop asking you this question – How Would You Like to File Your Return? 

These days CRA is switching to filing everything on-line, so that is what we will show you. Since the File online with QuickBooks button is marked, we will accept it and click on Continue. The GST/HST EFILING pop up window will appear and unless either of the two statements there apply to you, click on NO.

The File Your Return Online is the next pop up window, showing three instructions you need to follow and then click on OK to save your return as a .tax file. At this point QuickBooks will mark those transactions for this period as being Filed.

In case you forgot to print the return a final File Sales Tax window will appear asking you the question Would you like to print your sales tax return before filing? If you have not done so then say Yes. Since we did it earlier we will choose No.

The next screen will be the Save As and the default folder is called GST Returns. QuickBooks will assign it a File Name in the field called GSTQBT Sample Co.20101231.TAX and will want you to Save as Type  TaxFiles(*.TAX). You need to remember where this GST Returns folder is kept in order to access it to file it.

If you click on the drop down box beside the folder GST Returns, it should show you the path. This could be Shared Documents/Intuit/QuickBooks/Company Files/GST Returns/GSTQBT Sample Co.20101231.TAX., or something similar, depending on whether you are working on a stand-alone or a station in a network environment.  You need to remember this path, it’s very important.

You will now be taken to this next screen File Your GST/HST form with Quickbooks.  I will stop here because these next steps should be completed with the help of the Trainer or ProAdvisor in person. If you need help with this, then please contact me.

Next in this series will be the Payment of the Sales Tax.

Remember that you can follow me on Twitter @twitter.com/QuikBooksTrainr for tips and updates also.

www.quickbookstrained.com is now mobile friendly. From the web address you can choose Options/Mobile formatted and the site will appear in all its living colour for you to view. Check it out.

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10 Responses to “Filing Sales Tax in QuickBooks”

  1. If I use the HST netfile of CRA method to submit the HST return for Jan to Mar return. After some day in May, My boss want to adjust the same sales invoice of Jan instead of create another invoice in May. It will cause the changes of HST amount for the period in Jan to Mar return.
    What am I going to do on next return of Apr to June?
    How can I reprint the detail transaction report of Jan to Mar?
    Please let me know.

    • hi Bill, when you do your File Sales Tax for your next quarter, QB’s will pick up any changes or items that were missed previously. second question – Go to Reports, Sales Tax, and print the report that you need. Hope this helps.

  2. Dick Tchairdjian says:

    Hi Larry
    I am still using QB 2010. But hopefully my question is not outdated.

    I just read up and set up my accounts to deal with GST on Meals & Entertainment to account for the 50% Non-taxable portion. (Here’s the 4 steps outlined here: http://support.intuit.ca/quickbooks/en-ca/iq/Sales-Tax/Tracking-meals-and-entertainment-expenses/HOW15449.html )

    I haven’t used it yet, but now I noticed I have TWO Vendors when filing for the Sales Tax Return… 1) Receiver General, and 2) Receiver General – Non-Taxable. ! (based on the set up described in in Step-1 above.)

    My question is: Which one do I choose when I am ready to file the return?

    • Hi Dick, Receiver General – Non-Taxable refers to Goods or Services which are NOT taxed.
      The best way to deal with this is to set up a separate Tax Code, say the letter M, and match it to your Item. Set up the ITEM first. Go to Lists/ITEM, Sales tax Item, Tax Rate – 50% of whatever number you are using, for me it would be 5, so 50% of that is 2.5%, Tax Agency – Receiver General, Sales Tax line – Input Tax Credits.
      Hope that helps.

  3. Hi Larry,

    I’m using QB 2013 and for some reason, capital gains or losses appear on the HST report under Line 101 “Sales and other revenue”. I pretty sure it shouldn’t be there. It seems to be happening with journal entries. I removed all the dividend journal entries and replaced them with deposits and they disappeared from the HST report. I’m kind of stuck how to record a capital loss without a journal entry:
    Available for sale security account: credit xxx
    Investment cash account: debit yyy
    Investment Gains/Losses: debit xxx-yyy

    and yyy will show up on the Tax Agency Report 🙁

    Any suggestions?

    Thanks,
    Dave

    • Hi Dave, are you using journal entries to file your sale tax? If so, you should be using Sales Tax/File Sale Tax. If not and your speaking of a straight journal entry, and GST/HST is part of that entry, remember you have to use the column that says Tax Item .
      Other scenario, why would a security account have sales tax? Are we speaking here of stock shares. Need more info. Also, if you Google for a ProAdvisor in your area, they will help because it sounds like it needs to be actually viewed.

  4. I entered separated tax codes, etc as instructed in QB. however, when looking at my GST Payable register, I have both the taxable and non-taxable gst showing as paid…. what is the purpose then? I will still be claiming 100% of the GST… what am I missing?

    • Hi Claudia, this is a three step setup. After you create the tax code you have to got to Items and make sure the Tax Items are created and correct at each step. Next you go to your Menu line, click on Sales Tax/Manage Sales Tax and complete the information there? These are needed so that QB’s understands where the amounts and info go for the tax codes you created. Not sure why you would create non-taxable GST. Hope that helps.

  5. Hi Larry,
    We are a sole proprietory firm and our tax structure is simple. 13% on all sales is what we charge. The problem i am facing is that on the receiver general report for Line 103,106 & 110 its showing the amounts from the previous year too. But the sales amount shown is perfect as per the period entered. For Example when I select a period from 1st Jan 2015 to 31 Dec 2015 Line 101 shows correct Sales for the year 2015. But Line 103, 106 & 110 shows the total of year 2014 & 2015. But again the balance in Line 113 is correct with amount payable for 2015. Can you please help on how to correct it?

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  1. QuickBooks Period End Tasks: The Accounting Side - Chpt.2 | QuickBooks Trained.i.am - [...] you have not been using the QuickBooks File Sales Tax feature (and why not when I showed you how?)…

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