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Level 1
posted Feb 22, 2023 11:31:35 AM

How to enter GST remittance on self-employment or business income form?

I collected $3360 in GST, but using the quick-method I'll only be remitting $2541.  How do I fill in this form?

I'm particularly confused about the box "For each applicable remittance rate..."  Do I enter $2541 (e.g. column 3L in T2125) or do I enter $819 (e.g. column 3M in T2125).

Or am I completely misunderstanding this???

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3 Replies
Moderator
Feb 27, 2023 5:52:54 AM

Can you please let us know which TurboTax Product you are using so that we can assist you further? TurboTax CD/download or TurboTax Online? 

 

Thank you for choosing TurboTax.

Level 1
Mar 1, 2023 9:38:55 AM

Turbo Tax Online

Moderator
Mar 10, 2023 10:39:03 AM

You will need to use the following: The quick method is another accounting option available to help small businesses calculate their net tax for GST/HST purposes. This method reduces paperwork and makes it easier to calculate GST/HST remittances and file GST/HST returns because it eliminates the need to report the actual GST/HST paid or payable on most purchases.

 

When using the quick method, you still charge the GST at the rate of 5% or the HST at the applicable rate on your taxable supplies of property and services. For the list of applicable GST/HST rates go to GST/HST calculator (and rates). To calculate the amount of GST/HST to remit, multiply the revenue from your supplies (including the GST/HST) for the reporting period by the quick method remittance rate, or rates, that apply to your situation.

 

The remittance rates of the quick method are less than the applicable rates of GST/HST that you charge. This means that you remit only a part of the tax that you collect, or that is collectible. Since you cannot claim ITCs on most of your purchases when you use this method, the part of the tax that you keep accounts for the approximate value of the ITCs you would otherwise have claimed. For more information, see What are your quick method remittance rates?

 

For more information please check the CRA link: The quick method of accounting

 

If you need any further clarifications, we would be glad to assist you by having you contact us by phone or via Facebook or  Twitter