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Combined HST Filing Instructions

In This Article…

Introduction

The following instructions are to walk you through how to obtain the needed information from CosmoLex to complete your combined HST filing.

These are simplified instructions. Ensure that your bookkeeper/accountant doing the work is fully versed with HST filing procedures

Filing Amounts

Caution

The Taxes Collected/Paid reports, do not include journal entry adjustments made to the Taxes Paid/Collected GLs. You should use the 2201 and 2202 GL reports to capture all Tax Payment/Collection entries

  • Line 101 is the Total Sales for the time period being filed.
    • In CosmoLex,  you can run the Profit & Loss report or the 4100 Legal Fee Income GL to get this total sales number.
    • Line 105 is the Total HST collected on those sales:
      • In CosmoLex, you can run the General Ledger Detail for Account 2201 to get this total tax collected number

You should multiply your Line 101 number by 13% and compare it with Line 105 number. Not all disbursements are taxed at 13% so it is not necessary that these two numbers will match but it is a good comparison to make.

  • Line 108 is the Total ITC Credits, which is the total HST the client has paid out on disbursements and expenses.
    • In CosmoLex, you can run the General Ledger Detail for Account 2202 to get the total taxes paid. You have to ensure that no previous installments are included in the 2202 number.
  • Line 113 is the total amount of either refund or payment.
    • In CosmoLex, you can use the General Ledger Detail Total 2201 HST Collected minus the General Ledger Detail Total 2202 HST Paid to calculate the balance payable or refundable.
Caution

The amount shown in 2200 on the Accounting > Chart of Accounts screen automatically calculates this difference, but that number will not match the amount calculated using the GL reports because the Chart of Account screen repo on a cash basis.

  • The last step is to enter a journal entry zeroing out the 2200, 2201 and 2202 GL Accounts. Detailed instructions for recording payments to the Canada Revenue Agency and the related journal entries are covered in this article.

 

Updated on May 4, 2020

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