Transactions & Reporting > Sales (Money In) > SalesTaxes > Record a GST or HST Refund

Record a GST or HST Refund

If you have not already done so, create a customer record for the government department that issues the refund.

Note: On the Taxes tab, be sure to set the Tax Exempt status of each tax to Yes.

Create a new sales invoice.
How?
1. In the Home window, click Customers & Sales on the navigation pane.
2. In the Tasks pane, right-click the Sales Invoices icon and select Create Invoice from the menu.
Select the payment method:
By Cash
Select the bank account where the payment is taken from.
By Cheque
Select the bank account where the payment is taken from.
Enter a cheque number if different from the one displayed.
Pay Later
Select this if you have not yet received the refund.
In the Customer box, select the government department.
Enter the amount of sales tax collected:

In the Item Description column, enter the name of the tax you are collecting.
In the Amount column, enter the amount of total sales tax charged as a negative number.
In the Account column, click the list button .
Make sure All Accounts is selected, and select the <sales tax> Charged On Sales account, and click Select.

In the Item Description column, enter the name of the tax you are collecting.
In the Amount column, enter the amount of total sales tax charged.
In the Account column, click the list button .
Make sure All Accounts is selected, and select the <sales tax> Paid On Purchases account, and click Select.

Enter the amounts and accounts numbers for the remaining sales tax accounts, if you any.
To check the transaction, on the Report menu, choose Display Sales Transaction Detail. The Accounts Receivable or bank account amount should be shown as a debit. (This is the amount the government owes you.)
Click Process.
If you selected Pay Later as a payment method in step 3, create a receipt when you receive the refund.