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All about Bookkeeping
March 20, 2019
Question

How to correct HST return report

  • March 20, 2019
  • 1 reply
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The HST return report does not match at all what was filed to CRA.  It appears someone did not use the tax item code correctly and it's a bit of a mess.   There is an amount sitting in "sales tax amounts not reported or paid" and "unassigend Sales Tax Amount".   In fact I would say the GST/HST Return Report in QBD never filed.   How do you fix this problem so that there is a zero (0) balance for the new fiscal year.

1 reply

A
Anonymous
March 20, 2019

This can be painful to unscramble.  First you have to get to the bottom of the problem in case its the overall sales tax setup that isnt right.  If its just tax codes on items then thats not so bad ...

 

You then need to deal with the last comment:  I would say the GST/HST Return Report in QBD never filed. - Goto your CRA account and check what has (not) been filed. If you now accidentally miss or duplicate a filing it will make the mess even worse.  Further - for the filings that have been sent to CRA - you need to determine if there have been 'filed in QB' or not.

 

Once you know the system is working, whats been filed to CRA, and whats been filed in QB,  then the next step is to adjust the QB records to match what has been sent to CRA. That will probably involve a couple of 'sales tax adjustments' - cant detail this now.

Note that the intent is not to 'zero-out' anything, its to make it right - and zero due/refundable is probably not it.

A
All about BookkeepingAuthor
March 21, 2019

Thank you for replying.  HST was filed with CRA but not in QBD.  HST is filed annually.  Upon further review it looks like each entry did not have a tax code assigned, the tax code was left blank.  In other words the gross amount is entered leaving the tax code blank.  A journal entry was created at year end for each account category cr: the account  db: hst payable.  And there was no link to the tax item which would link it to the correct HST ltax account line (ie line 106 ITC) in the return report. It appears this goes back years.  It was never filed in QBD.  You mentioned do a "sales tax adjustments" I'll have to look into this further.  What a mess.

AddieC
AddieC
March 21, 2019

Hi there, 

 

The advice from MikeinBC is great. I'm glad you're looking into this further to make the proper adjustments to your sales tax. 

 

I recommend consulting with your accountant on this one. If they recommend that you complete a Sales Tax Adjustment in QuickBooks, here's how you can do that: https://quickbooks.intuit.com/community/Sales-tax/Process-sales-tax-adjustment/m-p/262010. 

If you need any additional help, please feel free to contact our Desktop phone support team at 877-772-9158. They're available 24/7, so you can call whenever it's convenient for you. 

If you have any other questions, please let me know. 

 

Cheers!

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