Canadian Sales Tax Help

by Denise
(Canada)

I use Quickbooks.

When recording expenses do I include the HST paid?

It was already reported as an ITC for my fiscal quarter. It almost seems like reporting twice!!

Thanks so much :)

Denise, I'm not sure what you mean when you say, "It was already reported as an ITC for my fiscal quarter."

If you enter all your expenses to QuickBooks including keying in the tax code on the coding line, QuickBooks will record and track your ITCs.

When it is time to send in your quarterly report, you use the Sales Tax Module in QuickBooks to ensure everything is done properly and to avoid double reporting.

So yes, you do enter your HST paid when recording your expenses by selecting the correct tax code. You must enter all your expenses for a period BEFORE you run and submit your HST report to CRA.

It sounds like you submitted your HST reported with a manual calculation, then decided to do your data entry after the fact in QuickBooks.

Can you be a bit more specific about what your problem is? What method of HST reporting are you using?