This article is for users who meet the following requirements:
- You are using the Canadian version of QBO
- You are using the the Sales Tax Centre (STC) to file your Canadian tax returns
Below is an example of the QBO STC Dashboard, and a few tips to map your transactions A2X's Accounts and Taxes mapping page. QBO recently made a few changes to the Sales Tax Centre to allow journal entries in QBO to be reflected in the STC.
When mapping your chart of accounts and tax rates in A2X, the transaction categories available on this page varies based on the sales platform. This in an example using A2X for Shopify, and the default suggested accounts from A2X.
The account types are included the example below for your reference.
If you would like to INCLUDE the sales and expenses in your QBO STC report:
- Income: Use exempt on sales
- Expense: Use exempt on purchases
Example of the QBO STC report highlighting the Sales and Other Revenue category
Please note the following:
- Liability and Asset accounts: All transactions mapped to a balance sheet account (liability or asset) can be mapped according to your preference. Out of Scope, Tax Exempt or No Tax are a few to consider
- Sales Tax Collected: All sales tax collected is mapped to a "Shopify Sales Tax Collected" liability account in this example. To split the sales tax into the various Canadian jurisdictions and tax codes, a manual journal entry in QBO is necessary before filing using the QBO STC feature.
- Debit Sales Tax Liability
- Credit GST/HST Payable - map the preferred tax code here
If you find it necessary to split the tax mapping based on taxable and tax exempt sales in A2X, use the orange plus signs to the right of each transaction category to expand this section and update your mapping for taxable sales and non-taxable sales. The example below includes:
- "Excluding Tax" (taxable sales)
- "Not Taxed" (tax exempt sales)
If you're missing revenue in your STC and need to find specific transactions in QBO try these two reporting options to find and update your sales tax codes in QBO:
- Transaction Detail by Tax Code
- Transactions without sales tax
I hope this article is helpful! If you have any questions about A2X, please feel free to reach out to the Partner training team for more information at Partners@a2xaccounting.com.