How to Set Up Sales Tax Reporting Period in QB Desktop Canada?

Hello everyone.

We are going to look at how to set up sales tax reporting periods in QuickBooks Desktop. So let's begin. The first thing you'll do is go to the Vendor tab. And here when you set up your QuickBooks desktop, they would have automatically added Receiver General, which is also Revenue Canada or cra, and Minister de Revenue, which is Revenue Quebec. If you set your province to Quebec.

To change your reporting period for your sales taxes, you would simply click on Receiver General, double click, and this opens up the details about the vendor. You'll notice that it has the same tabs as any ordinary vendor. But when you go to Sales tax settings, there is an option here to check that the vendor is a sales tax agency and this particular section becomes available. You can enter your sales tax registration number. I recommend that you do this. This will be your GST HST number which usually ends in RT 0,01 or 2 depending and so enter that and this will then be available on your invoices which you are required to reflect. Then you will select the sales tax return. You'll see there are different options here. We are just going to focus on the GSTHST return. The tax label is GSTHST again automatically populated. This is probably the best description, so I wouldn't change this.

Now this is where you would select whether your reporting period is monthly, quarterly or annual. So you click on the dropdown. So the majority of very small business owners have annual reporting periods. Let's click on that. And then you have to select the period ending and the period ending will depend on your gst, HST and qst. If you're registered registered reporting period, which might in a small number of cases be different from your actual year end. So check what that is. And then if for example, you are a corporation and your year end is June and your GTHT T reporting period is also June, that is what you would select. And then when you go to 5 file your sales tax return, it will automatically set to These dates from July 1 to June 30. The next option is to choose the account where all GSTHST payable collected on sales is allocated and the GST payable GST agency payable will on purchases is allocated, you'll see that this just goes to one account. It is a GSTHST payable account which is a current liability. And it's a liability because you owe these amounts to Revenue Canada or Revenue Quebec. So it is important to make sure that this account is set up again. Desktop default sets a default account which is generally the correct account. You can however choose to track them to two separate accounts. I personally don't think it's necessary because there is a fair amount of Reporting available in QuickBooks Desktop where you can see the breakdown. So you don't necessarily have to create two separate accounts in your chart of accounts, but if you want to, you can and you would simply scroll up, add new and then create the account.

Other than that, taxes for this agency are collected on other taxes. This used to be a feature when QST in Quebec was actually charged on top of the gst. This is no longer the case so you will likely not have to use this and your final option is to include this tax when billing for expense expenses. You may or may not toggle this. This is when you set when you set up expenses in QuickBooks Desktop to.

Submit to the customer and a tax code will appear there that you then can modify, delete or leave. As is some other notes, you can obviously select a monthly or quarterly reporting period. If it's monthly, there really is no period ending because it's every month and that's how the File Sales Tax interface will present the report. If it's quarterly, you choose the period and the quarter end that pertains to to your setup. Another note is that if you're tracking tax on sales separately, just remember that any tax on sales collected is payable to CRA or Revenue Quebec, while tax on purchases is actually claimable, which means you can reduce the amount of GST and PayPal that you owe based on the sales tax that you collect by the purchases that you have made on which GST and HST applies.

Finally, we would if you are registered in for gst, HST and QST in Quebec, you would do the exact exact same thing and administer the revenue. You click on Sales Tax Settings and you enter your sales tax registration number for Quebec. This is your QST number which usually ends in tq001 and here this is the type of sales tax form that you are going to be using because you submit a combined form form to Quebec. Similarly, the account is slightly different here. This is the GSC QST Payable account which is where all sales and purchases taxes paid will be recorded.

That concludes this video. If you have any questions or comments, or if you would like other videos that pertain to QuickBooks Desktop or QuickBooks Online, please leave a note in the comments and don't hesitate to like and subscribe. Have a great day.