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Paying GST

Paying GST (Regular Method)
See below if you elected to use the GST quick/simplified method.

See Corporations > Government Returns > Goods & Services Tax for an explanation of this method.

Display a Balance Sheet [Reports > Company & Financial > Balance Sheet Standard] for the period-end date. The amount that shows for GST Payable will be the amount of the cheque.
From the Vendors menu, choose Sales Tax, then File Sales Tax.
QuickBooks shows the last day of the previous month in the Show Sales tax through field. Enter the date that the current sales tax period ends.

If the dates are not correct, check the GST/PST preferences.

Select the appropriate vendor (usually Receiver General) by clicking in the Pay column to the left of the vendor.
From the Payment Account drop-down list, choose the chequing account you want to use.
Select the “To be printed” radio button. Enter the period-end date as the payment date. Ensure all of the information in the File Sales Tax window is correct, and click Next.
Check that the total on the GST report equals the balance sheet. Enter an adjustment to line 107 (in the box, not the button) if necessary to balance. Print the return.
QuickBooks creates the cheque. Verify that the GST Payable on the Balance Sheet is now $0.
If the company is claiming a GST refund, QuickBooks will move the refund amount to a customer receivable account. When the refund is received, enter a Receive Payment against this customer.

Paying GST (Quick Method)

See Corporations > Government Returns > Goods & Services Tax for an explanation of this method.

Display a Balance Sheet (Reports > Company & Financial > Balance Sheet Standard) for the period-end date. Note the amount of GST Payable.
From the Vendors menu, choose Sales Tax, then File Sales Tax.
QuickBooks shows the last day of the previous month in the Show Sales tax through field. Enter the date that the current sales tax period ends.

If the dates are not correct, check the GST/PST preferences.

Select the appropriate vendor (usually Receiver General) by clicking in the Pay column to the left of the vendor.
From the Payment Account drop-down list, choose the chequing account you want to use.
Select the “To be printed” radio button. Enter the period-end date as the payment date. Ensure all of the information in the File Sales Tax window is correct, and click Next.
Multiply the GST collected by 24%. This is the adjustment amount.
Select Adjust box > Change the date to period end date

The adjustment account is GST simplified (# 4100)
The adjustment amount is entered as a negative number > OK

Compare line 109 on the GST return to the GST Payable number on the balance sheet less the adjustment you just made; if there is a small difference, enter the difference on line 107 (do NOT press the adjust box).
If box 109 now equals the Balance Sheet > Next > OK.
QuickBooks will enter the cheque into your bank account.

NOTE 1: The only amount in GST paid (line 106) should be either 1) input tax credits on fixed asset purchases; or 2) an adjustment carried forward from a previous period.

NOTE 2: Once your total sales for the year are over $30,000, you can reduce the amount payable by an additional $300. Press the adjust box beside GST collected a second time and enter an amount of negative $300 (once per year).