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gpwconinca
April 18, 2020
Question

Can someone help? I am having issues with tax. My receipts are not bringing down the itc inputs to diminish hst

  • April 18, 2020
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1 reply

R
Rochelley
April 18, 2020

Hello @gpwconinca ,

 

It appears that your ITC's are not having an affect on your HST.  When you run the GST return report, are there any amounts in the Exceptions column?  If so, drill down on those amounts to the original transactions.  Ensure that the tax code is entered correctly.

 

You can also check that you have your tax codes set up properly and tracking to the GST/HST Payable account.  In 'Manage Sales Tax', ensure that your HST tax code is there, and that it is set to both collect on sales and pay on purchases.  It seems to me that QBO automatically creates those codes based on the jurisidiction you entered in your company setup, so they shouldn't be wrong but . . . . maybe they are. . . ?

 

Unfortunately, you can't edit an existing sales tax item.  If that is the case, and your HST tax item is only calculating on sales, then you would have to create a new HST tax item and check both boxes.

 

You would then have to go through every transaction and change the tax code to the new tax code you have just created.  I know it's tedious, but that is the only way your tax reports and remittances will be correct.  Once that is done, inactivate the original sales tax code so it doesn't show up as a choice in transactions anymore.

 

Here is some text from the Help Files regarding this and may help you:

 

Can you edit the tax rate on invoice ? The appropriate tax rate is entered in the system but not flowing through to the invoice.

 

The tax rates can only be edited in the Taxes settings, stephanie30. What you can do on the Invoice is select the tax rate. Let's check out why it isn't flowing.

Please go to Taxes and click on Manage Settings. You'll want to check to see if the tax rate has a Make Action option in the ACTIONS columns. It means it was inactivated. Just click that option to activate it. Then, you can go back to your invoice choose the rate.

 

 

If the tax rate is active in the first place, you can do other steps to check if this is caused by a browser issue.

Please log in to QuickBooks in a private browser and check to see if the rate flows to the invoice. This is a good start to check browser issues. If the rate is there, you can go back to your regular browser and clear the cache. If not, you can try other browsers like Chrome, Safari, Firefox, or Edge to isolate the case.

If you still need help on this, you can go back to this thread.

By: IntuitJess

 

I can't think of any other reason why your HST ITC's would not be tracking correctly.  I hope that answers your question . . . if that is not it, then I would suggest contacting the Help Desk. Best of luck to you. :)

 

 

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