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T
TizB
February 8, 2022
Question

Canadian Charities using QBO only. How do you handle HST you pay on invoices.

  • February 8, 2022
  • 4 replies
  • 0 views

I'm looking for a canadian charity that is using QBO. Desktop users, please do not comment as the systems handle things totally different.. 

I would like to know how you handle the HST you pay on invoices.  How do set up the HST refund owed as an asset account?  We do not charge/collect and taxes at all, but of course we do pay HST on all goods and serices.

I would love to actally be able to talk to someone rather than just go back and forth here - if that is even possible.

Thanks!

    4 replies

    N
    NQ77
    February 8, 2022

    Yes this is possible, I have setup my client for PSB rebate on Ontario.

    It has to be setup in the tax module

     

    T
    TizBAuthor
    February 8, 2022

    Can you tell me how to do it?  I am brand new to QBO and still working on set-up.  Thanks

      I
      I need to know this too
      February 10, 2022

      Did you get an answer?  Love to here the solution 

      J
      JamesM4
      February 19, 2022

      Hello Olabero. Thanks for reaching out to us here. I'll be happy to assist you with achieving your QuickBooks goals. To get started, could you elaborate about what you're looking to accomplish in QuickBooks? 

      J
      jennifercornish
      May 28, 2023

      There is this:

      https://intuitglobal.intuit.com/iq/quickbooks/docs/HST_Charity_xONx.pdf

       

      Also, this is helpful ... instructions for M&E tax group rate could be adjusted to match the current year sales tax rebate percentages for charity HST?

      https://quickbooks.intuit.com/learn-support/en-ca/help-article/sales-taxes/set-sales-tax-rate-meals-entertainment/L7W0DWhNw_CA_en_CA

       

      C
      CindyLou2x2
      July 16, 2024

      This is how I do charity HST in QBO (and also did the same for many years in QB Desktop).  I love this duct tape method because it puts the unrecoverable HST onto the cost of each expense.  So when I pull a report for an event, for example, the actual costs are complete.  I know you can one shot the expense for HST amounts you don't get back when you file semi annually, but I strongly prefer my way.

       

      Set up these tax codes (note these are for Ontario only but the same method will work for any province / territory and you'll just have different percentages - go look at the pdf of the rebate form to see):

       

         HST Fed portion ITC   2.5%   and make it go to line 106   and say filing frequency semi annual

         HST Prov portion ITC   6.56%   and make this go to line 107 adjustments (trust me)   and say semi annual

         HST unrecoverable   3.94%   and set it to add to the expense instead of going on the sales tax return

                           and say annual filing frequency for this one                         

       

      Then make a sales tax group called something like HST Charity   semi annual filing   and add all three of the above to the group which will total the 13%.

       

      Then it is the group code you use for every expense with HST.

       

      Time to file and you will see the amount for the fed portion on line 106, the amount for the prov portion on line 107 and that's it you are done.  No calculations necessary.

       

      This is a little bit of work to set up but magical from there forward!

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