Skip to content
logo Knowledgebase
Page Language

How to record and remit Sales Tax

Created on  | Last modified on 

Summary

Learn how to calculate, record, and remit your federal and provincial sales taxes (GST, HST, QST) to the appropriate government agencies using Sage 50 Accounting.

Resolution

Add the provincial or federal government to your vendor list

If your provincial and federal government agencies aren’t on the vendors' list, add them manually.

Find out how much tax you owe or are owed

By Tax Summary

  1. In the Home window select Reports, and choose Tax.
  2. Select a Report Type of Summary.
  3. Enter a Start and Finish date. These dates must reflect your remitting period.

     NOTE: This report doesn’t include adjustments to the remittance amount you paid in an earlier period. To check for changes in your remittance from earlier periods, review your remittance accounts in the Transactions by Account report. 

  4. Under the Select Transactions to Report section, select Purchases and Sales.
  5. Select the Taxable Transaction Tax Status.
  6. In the Select Taxes box, select the tax you want to report.
  7. Click OK.
  8. note the amount of Total GST/HST/QST paid under Purchases in the Taxes Paid column.
  9. Under Sales, in the Charged Taxable Sales Tax, note the amount of Total GST/HST/QST charged.
  10. The difference between the amount of tax paid and charged shows at the bottom.

     NOTE: Purchases dated in a prior period won’t show in the report for this period. 

By Balance Sheet

  1. In the Home window select Reports, Financials, and click Balance Sheet.
  2. In the Balance Sheet - Modify Report window, enter the GST remittance period end date in the Date box.
  3. Look for the number of GST Charged on Sales and GST Paid on Purchases.

Process a payment or record a refund

  1. If you owe money to the government, remit a payment.
  2. Open the Payments window. Select "Make Other Payments" in the drop-down menu.
  3. Select the payment method.
    • By Cash: Select the bank account where the payment comes from
    • By Cheque: Select the bank account where the payment comes from
  4. Enter a cheque number if different from the one displayed.
  5. From the list in the Pay To the Order Of box, select the federal or provincial government.
  6. In the Comment field, enter "End of Remitting Period" plus the date if different from the transaction date.
  7. In the Account column, click the list button.
  8. Select the GST/HST/QST Charged On Sales account.
  9. Click Select.
  10. In the Description column, type in which tax you’re collecting.
  11. In the Amount column, enter the amount of Total GST/HST/QST charged.
  12. On a new line in the Account column, click the list button.
  13. Select the GST/HST/QST Paid on Purchases account.
  14. Click Select.
  15. In the Description column, type in which tax you’re paying.
  16. In the Amount column, enter the amount of Total GST/HST/QST paid as a negative number.
  17. Repeat steps 6 and/or 7 for any additional taxes that apply to this agency.
  18. Optionally, to print a cheque, click the File menu.
  19. Choose Print (or click the Print button on the toolbar).
  20. Click Process or Post.

Need more help?

Chat now