How do I enter just HST paid to MTO (Ministry of Transportation Ontario) for used business car purchase?

Hello there,

I appreciate you reaching out to the Community. I want to make sure you get the best answer on how to enter the corporate tax payments. 

I recommend contacting an accounting professional. If you're not in contact with one, I encourage searching for one on our website using this link here. Let me know if you have other questions. I'm here to assist. 

You would do a JE or write a cheque as follows:

DR     HST payable

CR     Bank account

If you're doing a JE, you can do the above entry (making sure you tab over to the right and enter the correct sales tax item on the HST Payable account line of the JE).

If you're writing a cheque, you'll have to enter a positive amount for the value of the car, with the HST code enabled, then do a second line with a negative amount for the value of the car, and no tax code entered (or 'E' if it won't let you leave it blank).  This creates a tax only payment from your bank account.

Because the HST you pay is a recoverable tax (ITC) it doesn't go anywhere except to the tax account and the cash account you paid it from.