If it's the question regarding the Quick Method - then that is for GST/HST only. You'll enter the QST you paid on the provincial form.
Thanks Susan. I probably didn't explain it well. Turbotax is asking me (under the self-employment part) what the total revenue of my business was, including "GST/HST or PST if applicable". This part is ok. After some clicks the system asks if I have collected GST/HST, and it then proceeds to ask for the total GST/HST collected. However, it never asks for the amount of collected QST. I assume that this amount would include PST in general as well since my total revenue has PST included. Is that correct? Turbotax should make it clear that the collected amount also includes/excludes PST.
The Federal T2125 form asks about GST/HST collected because those are Federal sales tax. You'll be asked about QST collected on the TP-80-V which is submitted to Quebec.
I understand that we'd report our provincial sales tax to the province and not federally, but why is TurboxTax counting PST and QST as income? This doesn't make sense to me. If we are including PST or QST in our total revenue, why is there no place for us to deduct it from the federal form? It seems that the direction is wrong and that the total revenue should exclude PST...
I am having the same concern, the replies so far haven’t responded to my question. I have found no place to indicate the amount of QST that I paid last year, but the income that I am asked to input *includes* the QST that I paid.
Hi @Xeyti , I think this is related to the form T2125, which in line 3A asks for: "Gross sales, commissions or fees (include GST/HST collected or collectible". Then in line 3B it says "GST/HST, provincial sales tax, returns, allowances, discounts, and GST/HST adjustments (included in amount 3A". After this, it takes 3A minus 3B. This makes me think that the amount in 3A must include PST as well. Turbotax fills this cells with the information that you provide in the system. However, I believe T2125 could be more explicit with line 3A, since 3B does indicate PST explicitly.
Disclaimer: I am not a tax expert and this is just a personal opinion, not a professional advice.
Susan under expenses it asks to enter sub hired, cost of purchases, etc.... do these include hst or should I exclude it?
@Azarpub If you are not registered to collect GST/HST then you would include sales tax on your expenses.
I am registered for HST.
When entering sales it asks me to include the hst.
the question is in expenses, when entering purchases and sub contractors, do i include Hst there as well?
Do you have a GST number and claim a GST rebate? You will then enter the amount of the expense minus the GST you paid if you are claiming a rebate for it. If you are not claiming a rebate on the tax, you will enter the expense amount plus the tax you paid in the column according to the tax you paid and are not claiming a rebate.
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Thank you for this information, most helpful! I just wanted to confirm/clarify something ... I understand that in PART4 of the T2125 for business expenses, things like Advertising, Office Expenses, etc. , we are to enter the expense amount only, less the GST/HST we paid if we are registered. Which I am, and I do claim ITC.
My question is : Does the same apply to Part 3D - Cost of goods sold? For lines - Opening Inventory and Purchases During the Year - Would I include or exclude the GST/HST that I paid on my purchases of raw materials?
You would exclude the hst as it will be done with your hst return.
when you enter your revenue with hst, after a few screens it will ask you to enter hst collected. On the business statement the software will deduct hst. Everything else entered should be without hst.
I was wondering if you figured out where to enter 'QST collected' for the 2023 return? I can't find it and I'm sure this is affecting my income tax owed since 'total income' includes GST and QST/PST.
Thanks!
Hi,
I was wondering if you found where to enter QST/PST collected, in Turbotax? This is driving me a bit crazy!
Thanks!
J
Hi @MTLfreelancer, I ended up including the provincial sale tax (PST) in line 3A, together with the GST that I had collected. I found this was reasonable since the form T2125 takes 3A minus 3B to obtain cell 3C, and since 3B explicitly indicates that it should include PST (as far as I undertand, QST is one of the PST's).
This is how I submitted it, although I am not an accountant or a tax consultant so please do not consider this as a professional advice.