How journal entries affect the tax return

Journal entries are used to move amounts from one general ledger account to another and do not affect the tax return. However, there may be situations where you need to include taxes on your journal entries and report them on your tax return. You can do this by selecting Include on tax return for a line when creating a journal entry.

The table below shows how the entries marked for inclusion affect the tax return:

Ledger Account Credit Debit CRA (GST/HST) British Columbia (PST) Manitoba (PST) Saskatchewan (PST) Quebec (QST) Combined (GST/HST-QST) Quebec Only
Revenue (all) Increases Decreases Box 101 Box A N/A Box A Box 201 Box 101
GST/HST Collected and Collectible Increases Decreases Box 103 N/A N/A N/A N/A Box 103
GST/HST Input Tax Credits Decreases Increases Box 106 N/A N/A N/A N/A Box 106
BC PST Collectible on Sales Increases Decreases N/A Box B N/A N/A N/A N/A
SK PST Collectible on Sales Increases Decreases N/A N/A N/A Box B N/A N/A
MB PST Collectible on Sales Increases Decreases N/A N/A Box 1 N/A N/A N/A
QST Collected and Collectible Increases Decreases N/A N/A N/A N/A Box 203 Box 203
QST Input Tax Refund Decreases Increases N/A N/A N/A N/A Box 206 Box 206

Payable accounts

Amounts for the payable accounts below cannot be selected for inclusion on the tax return. Taxes for these accounts must be calculated from amounts on the return.

  • Federal Income Tax
  • GST/HST
  • QST

 

Related topics