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B
bbcottawa
April 20, 2023
Question

HST Receivables

  • April 20, 2023
  • 1 reply
  • 0 views

Each time a charity records an expense on which there is 13% HST, it can calculate 69.69% of the HST and record it in its 13% HST recoverable account. The remaining 30.31% of the HST should be recorded with the expense incurred.

Reference: HST-for-Churches.pdf (baptist.ca)

 

Is it possible to create a custom tax rate that automatically calculates this amount?

1 reply

J
JamesM4
April 20, 2023

Hello bbcottawa,

 

Welcome to the QuickBooks Community. Recording your transactions the right way is a good method for keeping your books clean. Rest assured, I'll be happy to show you how to set up a custom tax rate in QuickBooks.

 

The method below will allow you to manually set up a tax for one of the existing agencies (i.e., Receiver General, Canada Revenue Agency, etc). Here's a few thing to take note of:

  • This can be used for tax rate changes and other special tax rates.
  • It's better to add an additional tax code than to change the existing one (this way all sales tax rates for that agency would show on the same return).

1. Go to Taxes.
2. Select Sales tax. (Tip: If you use payroll in QuickBooks Online, you may need to select Sales Tax as opposed to Payroll Tax.)
3. Select Manage sales tax.
4. Locate the sales tax agency you wish to add the new rate for, and select Add custom rate.

 

If you'd like to go deeper into learning more about the above, I encourage you to check out the following article that shows you how to: Add a custom sales tax rate for an existing sales tax agency. Feel free to ask other questions. I'll be on standby in case you need anything else. 

B
bbcottawaAuthor
April 20, 2023

Thanks for your reply.

 

Using the information you provided, how would I create a Tax rate that:

* Sets the account to: HST Receivable
* Calculates the amount based on 69.69% of HST

J
JamesM4
April 20, 2023

For the specifics on what rates to enter, I recommend getting in touch with a QuickBooks trained accounting specialist. Doing this helps make sure your books remain accurate. In case you're not in contact with one, I encourage you to search for one on our website using this link here. Feel free to keep me posted on how you make out, I'll be one message away.

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