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V
victoria28
August 6, 2021
Question

For Ontario Indian Status sales, how do we set-up the tax module to correctly report the full 13% charged (line 105) and the rebate applied of 8% (line 111)?

  • August 6, 2021
  • 1 reply
  • 0 views
For clarification, the sale is happening for services provided off a reserve. It is not exempt or zero-rated, but should be charged at the full 13% with the provincial point-of-sale rebate being a separate line showing a reduction of 8% on the invoice and subsequent HST report.

1 reply

T
Tammy_H
August 6, 2021

Hello victoria28,

 

Welcome to the QuickBooks Community. It's a great place to find answers to your questions and connect with other users. I can point you in the right direction to create your sales tax entries.

 

One of our accountant users shared some information on First Nations tax exemptions in this post. QuickBooks Online sets up all the standard codes for your convenience; however, when you're dealing with taxes that differ from the norm, you'll need to create a custom sales tax. I include articles for setting up alternative tax codes and making adjustments when necessary: How to set up a new sales tax code; Adjust sales tax.

 

When it comes to recording a sales tax transaction that isn't a basic tax entry, I suggest reaching out to your accountant as this falls into their expertise. If you don't have one, you can find one by clicking the My accountant tab and click Find a pro to help. 

 

If you have any other questions, please let me know. Have a fantastic day!

V
victoria28Author
August 6, 2021

Hi Tammy - thanks for the response, but it does not help. 

 

I am the accountant, and have looked into the "manage taxes" module, but do not see how a rebate tax item (which flows to line 111 on the HST return) can be created and tracked against a sales invoice, which should also have a full 13% HST charged (which flows to line 105 on the HST return).  QuickBooks does not seem to allow for a "negative" tax line on a sales item for tax collected, nor does it seem to allow for a tax paid amount to be tracked against a sales item.

 

I am hoping I am just missing something?  Is there a more technical support that I could reach out to instead?

T
Tammy_H
August 6, 2021

Hello Victoria28,

 

Thanks for reachings back out. When you're in the manage taxes section, setting up your custom tax, it does give you the option to choose the rebate line item under I pay this on purchases when you click the dropdown. In the I charge this, the Rebate line is not an option; however, tax adjustment is. All of these steps are laid out in the article that I shared.

 

If these options fall short of your expectations, I invite you to provide feedback by going to the Gear Icon and selecting Feedback. You can share your thoughts and click Submit feedback.  

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