HST tax
dburniston
Member Posts: 3
Hi,
Just evaluating Wave for a real estate agent. We need to track HST (13% harmonized sales tax) collected and HST paid out to determine what is owed to the government. The challenge I have is that some of the expenses are food related. We pay the full amount of HST when purchasing, but can only claim 50% of it for reducing what is owed.
Is there a way to handle that?
1
Comments
I'd Love an answer to this as well!
Hi @dburniston and @JDub.
Unfortunately, there isn't a way to calculate this automatically in Wave. I can think of a way you could work around this limitation, but it will take a bit of work.
After a receipt is uploaded, find and selecting the matching transaction on the Transactions page. Split that transaction evenly following these instructions. Once that's done, apply the tax to only one of those halves.
If you have any questions, let me know.
That fixes the issue with the amount of HST that can be claimed as credit, but wouldn't it miss the other half of the HST for those transactions being shown as an expense?
No, @dburniston, since when you add taxes to a transactions, Wave calculates taxes backwards.
So if, say, you have a transaction of exactly $10 after taxes, you would split it in two halves of $5.
When you assign HST to one of those halves, Wave will break it down like this:
If you want your books to be more precise, you could also create a non-recoverable version of the HST to assign to the other half.
Thanks. I think I have it figured out now.
Always happy to help!
Let me know if you have any other questions about this, @dburniston.
Hi @Bonniejo20 . You can add taxes under Settings > Sales Taxes and then apply these to any and all applicable transactions in Wave. You can then check your Sales Tax Report which should give you any information necessary to calculate your ITCs.
Hi, anyone know why HST tax report doesn't show my HST paid in business expenses but only shows the HST that's been collected by me? I thought that this report would show both HST collected and HST paid for business and then help offset my quarterly tax bill to the government. All my purchases do have HST added to them so it should show up, no?
Hey @JustinG. That's correct, the amounts would show up under the Purchases Subject to Tax column -- just to confirm here, are you using the same HST account and is it listed as a recoverable tax? One other thing, if possible... could you please send a screenshot of the report itself (with a date range including your transactions) as well as a screenshot of an example transaction that includes that HST. Let me know when you get a chance so we can dig into this a bit further.
Hi JamieD. What about bills? Does the HST from bills show up on the sales tax report. I would need the HST from some of my bills to show up in this report.
Hi @hmalaika , the HST applied to items on your Bills will be reported on your Sales Tax reports as long as the sales tax is a recoverable sales tax. If you are uncertain, you may check this by navigating to Settings > Sales Taxes.