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P
perrydeman
August 2, 2021
Question

Can I change the HST rate to nil for purchases? A client uses the Quick Method of Accounting for HST. In essence, sales are 13% HST and purchases are 0%.

  • August 2, 2021
  • 1 reply
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1 reply

Noelia Nievas
Noelia Nievas
August 2, 2021

Hi @perrydeman 

 

Thanks for reaching out to the community. We are more than happy to help.

 

  1. From the left menu, select Taxes.
  2. In the top right-hand corner, select Manage sales tax.
  3. In the Tax agencies table, choose the rate you want to change, and select Edit rate under Make inactive dropdown.
  4. In the Edit sales tax rate window, change the rate. You can also change the name if you like.
  5. Set the Effective date, if required, this will be the date from which the rate change will take effect.
  6. Choose Save.
  7. Select On or Off beside the tax rate you want to make active or inactive.
  8. To confirm your changes select Yes.

 

Click here for the full article. Reach out back if you need some extra assistance.

 

Noelia

P
perrydemanAuthor
August 2, 2021

Yes that is the method for custom rates, but can the QBO provided rates be changed? See the attached file.

T
Tammy_H
August 3, 2021

Hi perrydeman,

 

You're correct; that method would work for changing a custom rate. The rates QBO sets up are based on the provincial guidelines, and the option to edit the rate isn't there. QuickBooks Online has a comprehensive sales tax module that takes care of the set up of the standard taxes for you. For situations such as a client that uses the Quick Method, it allows you to create a custom tax. I can point you in the right direction. 

 

The Quick Method would require using a custom tax. You can set up a custom rate and make the existing one inactive if you're unsure how to find detailed steps in this article: How to set up a new sales tax code. If you have any questions as you review the article, reach back out.

 

Have a terrific evening!

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