Only Pay GST On Self-Employed Income?
I am filing our tax return for 2014 for the first time using TurboTax from our accountant previously doing it for us.
This is my situation: I run a small data consulting company to offer IT support as 'contract work' for other companies. The only company I dealt with in 2014 was a company in BC (I live in QC) and thus have JUST been charging them the GST (5%) on top of the invoice amount, not charging any QST. My company is registered provincially and federally with a GST + QST tax number. I have not made any payments throughout the year of my GST collected to the government, so I know I would have to pay it once filing.
I entered all the income made in TurboTax (before GST) and it seems to have calculated it with GST. What I am wondering though, is does TurboTax know to not charge QST on this amount since I did not enter anywhere that all my invoices were out of province and I never charged QST to my client?
Something I did notice , is that my 'estimated tax return' on the right side did get significantly lower once I entered that income since I did not pay any income tax or GST on it yet.
I just want to make sure I'm not going to end up paying an unnecessary tax (QST) since my invoices were all to out-of-province clients.