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A
adimelon
July 19, 2025
Question

How do we stop tracking ITCs?

  • July 19, 2025
  • 1 reply
  • 0 views

I am with a provincially incorporated nonprofit and we aren't HST registrants and don't engage in commercial activity to be able to claim input tax credits anyhow. However, QBO keeps showing ITCs and a negative HST in our liabilities. We don't have any HST liabilities. I have to do an adjustment every month to make sure the reports we publish are accurate but there has to be a better way to do this? Is there no way for it to stop tracking HSTs if we aren't registered and have no commercial activity? 

1 reply

C
CharmieHQuickBooks Team
QuickBooks Team
July 19, 2025

We appreciate the detailed information about the challenges you're facing with ITCs and HST tracking in your nonprofit organization, despite not being an HST registrant or engaging in commercial activities, Adimelon.

 

To stop tracking ITCs and HST moving forward, let's set the default tax rate to Out of Scope Tax.

 

Here's how:

 

  1. Go to the Gear icon, then click on Account and Settings.
  2. Click on Advanced, then select the Pencil icon in the Accounting section.
  3. Choose the Out of scope Tax from the Default tax rate selection dropdown.
  4. Select Save, then Done.

 

Once done, any new transactions will no longer track ITCs and HST.

 

If ITCs and negative HST are still showing in your liabilities from previous transactions, you can make adjustments to clear that account. I suggest consulting with your accountant to ensure accurate adjustments.

 

If you continue to see ITCs and HST in liabilities after these changes, I recommend contacting our Live Support team. They have the necessary tools to securely review your account and determine why the ITCs and a negative HST are being tracked and are showing in your liabilities. They can also advise you on the next steps to resolve this issue.

 

To find out the best time to call, you can visit this page to check our Support Hours: Get help with QuickBooks products and services.

 

Feel free to use the Reply button if you need further assistance. The Community team is always here to support you.

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