This article is for users who meet the following requirements:
You are using the Canadian version of QuickBooks Online
You are using the the Sales Tax Centre (STC) to file your Canadian tax returns
Below is an example of the QuickBooks Online STC Dashboard, and a few tips to map your transactions A2X's Accounts and Taxes mapping page. QuickBooks Online recently made a few changes to the Sales Tax Centre to allow journal entries in QuickBooks Online 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 QuickBooks Online STC report:
Income: Use exempt on sales
Expense: Use exempt on purchases
Example of the QuickBooks Online 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 QuickBooks Online is necessary before filing using the QuickBooks Online STC feature.
Debit Sales Tax Liability
Credit GST/HST Payable - map the tax centre line to adjust in the "Sales Tax" column below
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)
QuickBooks Online Tip:
If you're missing revenue in your STC and need to find specific transactions in QuickBooks Online try these two reporting options to find and update your sales tax codes in QuickBooks Online:
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.