This is a YouTube video titled "How to Record GST/HST Interest and Penalties in QBO" created on September 23, 2025. The content features a single speaker, Ronica Canna, a CPA and CFA, who provides a detailed tutorial on how to record interest and penalties for late GST/HST payments in QuickBooks Online, aimed at small business owners. The video includes step-by-step instructions and references to additional resources and videos for related tasks.
Hello. In this short video I am going to show you how to reflect the interest and penalties that you might have to pay to Revenue Canada for late payment of the GSTHST return. My name is Ronica Canna. I am a cpa, a CFA and the founder of Montreal Financial where you can find lots of resources for for your small business and I encourage you to sign up for my newsletter. Okay, so you'll see right now we're in on the sales tax interface and to get here you would simply go to sales tax on the left hand side you might have taxes and then payroll tax and sales tax, but it will be on the left hand side. And so once you come here, I do have another video on how to fill file your GST and hst return in QuickBooks Online and I'll leave a link to it in the description. But for now we're quickly going to file this 2024 return and then we are going to record a payment that includes interest. So let's just go to prepare return and I am going to I personally for the filing date I always like to choose the date that corresponds to the end date of the period. And this might be an accountant preference, but what it does is on the balance sheet it takes it out of GSTHST payable and shows it in GSTHST suspense as of December 31st. You don't necessarily have to do that. If you want to choose today's date that is fine as well and that some people might argue that that's better. But I am going to choose December 31st and then I am going to click on Mark as filed and this will file my GST hst return in QuickBooks only. I still have to go to CRA and enter all of these fields figures onto the CRA return. And I also have another video for that which I will link to in the description. Okay, so let's click on continue. And now it is prompting me to record payments. So I can click on this or I can simply click on pay later. And let's say I have filed my return. It is late so I wait for my notice of assessment because I know that there are going to be some penalties. And so finally I received my notice of assessment and the amount on that was $3,000. Let's just round it up. We're going to assume that your GSTHST notice of assessment is for $3,000. So I'm simply going to go here record payment and I'm just going to ignore this credit. And QuickBooks makes adding the Interest and penalties, super easy and I'm going to show you how. So let's just choose the bank from which we're going to pay this from. And here I'm going to add interest penalty. And so my adjustment account is going to be I have an interest and penalty account. And if you don't have interest in penalties, you can add a new one. You could also just put it to interest expense. The reason that I have this separately is because interest and penalties are not deductible and because they have to be separated, I like to just have a completely separate account for it. And so that makes it much easier when I'm doing my tax return. Okay, so I'm going to click on interest and penalties. I am going to put the amount and I know the total amount of the notice of assessment is 3000 doll and you can actually calculate directly in this box. I also have a video about that. It's one of those neat features of QuickBooks Online. And so I'm going to deduct 2,642.31 from here I have $357.69 of interest and penalties on my late GST HST filing. I will click on save and you'll see here it creates another box with the interest penalty and you'll see the 357.69 here that now adds up to exactly $3,000 which is the payment that I am going to make. And once I record this payment, it will match, assuming you have the banking download activated, it will match the amount that is downloaded from the so you really don't have to worry about any additional entries. And if you do enter it this way and you do use the banking download, make sure that you match it. Otherwise you will duplicate the payment. Okay, so I'm just going to click on record payment and we are done. So I hope that was helpful. If you have any questions, don't hesitate to leave a comment and I will try my best to answer it. And please like and subscribe to my newsletter. Have a great day.
