HST code on US services

Hello j_byte,

I hope you've been well since your last visit to the QuickBooks Community. Properly accounting for your transactions and the sales tax codes associated with them is just as important as the other tasks we've gone over in the past, and I'd be happy to point you in the right direction with working with sales tax as well.

I see that the last few times we were working with you in Community that you were using QuickBooks Desktop and that this post is tagged for QuickBooks Online. If you're working with both, that's awesome, and I hope it's really expanding your reach when it comes to a client base if you're still also a ProAdvisor.

Once you've turned on sales tax in QuickBooks Online, the program will prompt you to assign a sales tax code to a transaction. For situations like yours where you have a US transaction that does have any Canadian sales tax codes, it can be tricky to navigate. In these situations, many QuickBooks users opt for the Out of Scope sales tax code, which can be applied to transactions that don't qualify for Canadian sales tax. It's a 0% code, but unlike Exempt or Zero Rated, it doesn't impact your sales tax returns. This article goes over common codes in QuickBooks Online: Common sales tax code

To determine if this is the best code for you, I recommend consulting with some colleagues, especially others who've used QuickBooks Online. They may be able to shed light on this for you so you can make an informed decision on which code to use on your transactions. The CRA tax tips line may also be useful for you for ensuring that you're meeting the government regulations with your transaction. Check it out here: Tax Information Phone Service (TIPS)

Have a great rest of your day.