Overview
Set up your QuickBooks Online tax codes so SmartMoving invoices with Canadian sales tax sync to QuickBooks without errors.
Available to SmartMoving companies set up in Canadian dollars (CAD) with QuickBooks Online linked.
Before You Start
You are signed in to SmartMoving as an admin.
Your QuickBooks Online account is linked to SmartMoving and has at least one branch assigned to it.
Sales tax is turned on in QuickBooks Online.
You know the sales tax rate set on each SmartMoving branch. To check it, go to Settings > Company Settings > Branches, click the actions menu on the branch, and click Edit. The rate is in the Sales Tax Rate field.
Your accountant has confirmed which sales taxes apply to your moving services in your province.
Note: These steps apply only to SmartMoving companies set up in Canadian dollars (CAD). If your SmartMoving company is set up in US dollars (USD), keep sales tax turned off in QuickBooks Online so it does not interfere with the sales tax information SmartMoving sends to QuickBooks.
How Canadian Sales Tax Syncs From SmartMoving to QuickBooks
SmartMoving stores one sales tax rate on each branch, such as 5%, 12%, 13%, or 14.975%. When an invoice syncs, SmartMoving sends QuickBooks one tax amount using the QuickBooks tax code you mapped to the Taxed row on the Tax Info tab. QuickBooks then checks that the rate on that tax code matches the tax amount.
In several provinces, sales tax is made of two taxes. QuickBooks' built-in codes for those provinces are combined codes that hold two separate rates. QuickBooks cannot split one SmartMoving tax amount across two rates, so it rejects the invoice and the sync fails.
For every Canadian SmartMoving account, the QuickBooks tax code mapped to the Taxed row must be a single-rate code. Its rate must match your SmartMoving branch sales tax rate exactly.
Which QuickBooks Tax Code to Use for Your Province
Canadian sales tax can include Goods and Services Tax (GST), Provincial Sales Tax (PST), Retail Sales Tax (RST), Quebec Sales Tax (QST), or Harmonized Sales Tax (HST). The table below lists each province or territory's sales tax rate and the QuickBooks tax code to map to the Taxed row in SmartMoving.
Province or territory | Sales tax rate | QuickBooks tax code for the Taxed row |
Quebec | 14.975% (5% GST + 9.975% QST) | Custom single-rate code at 14.975% |
British Columbia | 12% (5% GST + 7% PST) | Custom single-rate code at 12% |
Manitoba | 12% (5% GST + 7% RST) | Custom single-rate code at 12% |
Saskatchewan | 11% (5% GST + 6% PST) | Custom single-rate code at 11% |
Ontario | 13% HST | Built-in HST code for Ontario |
Nova Scotia | 14% HST | Built-in HST code for Nova Scotia |
New Brunswick, Newfoundland and Labrador, Prince Edward Island | 15% HST | Built-in HST code for your province |
Alberta, Yukon, Northwest Territories, Nunavut | 5% GST | Built-in GST code |
⚠️ Warning: Do not map a built-in combined QuickBooks tax code, such as GST/QST QC, GST/PST BC, or GST/PST MB, to the Taxed row. These codes hold two rates, so every invoice SmartMoving sends against them fails to sync to QuickBooks.
Quebec, British Columbia, Manitoba, and Saskatchewan businesses that charge GST only can skip the custom code. For example, your accountant may have confirmed that PST does not apply to your services. In that case, set your SmartMoving branch sales tax rate to 5% and map the built-in QuickBooks GST code to the Taxed row.
For the Non-Taxed row, any province can use the QuickBooks Exempt, Zero-rated, or Out of Scope tax code. Use the one your accountant recommends.
How to Create a Custom Single-Rate Tax Code in QuickBooks Online
Create a custom single-rate QuickBooks tax code if your branch charges GST plus PST, RST, or QST. Use your province's combined rate: 14.975% for Quebec, 12% for British Columbia and Manitoba, or 11% for Saskatchewan.
In QuickBooks Online, go to Taxes > Sales tax.
Click Add tax or Custom tax rate, depending on your QuickBooks version.
Select Single tax rate.
Enter a name that includes the rate, such as GST+PST 12%.
In the Agency dropdown, add an agency or select your provincial tax agency.
Enter your province's combined rate in the Sales rate field.
Click Save.
The custom single-rate tax code appears in your QuickBooks Online sales tax list, ready to map in SmartMoving.
Note: Do not select Combined tax rate in QuickBooks Online. A combined rate splits the tax into two parts, which causes SmartMoving invoices to fail to sync. Menu names in QuickBooks Online vary by version and language. If the Agency dropdown has no option to add an agency, add one from your QuickBooks sales tax settings first, then create the rate.
How to Map the Custom QuickBooks Tax Code in SmartMoving
Go to Settings > Integrations > Integration Library > QuickBooks.
Click Manage on the QuickBooks account card.
Click the gear icon, then click Update Lists under Sync. SmartMoving pulls your active QuickBooks tax codes, including the custom code, and reloads the page after about 90 seconds.
Click the Tax Info tab.
In the Taxed row, select your custom single-rate tax code.
In the Non-Taxed row, select Exempt, Zero-rated, or Out of Scope.
Click Save.
Check that each branch's sales tax rate matches the custom code's rate.
Invoices that sync to QuickBooks after you save carry one tax line whose rate and amount match in SmartMoving and QuickBooks.
Note: SmartMoving companies set up in Canadian dollars (CAD) always see the Tax Info tab. The Sales Tax toggle on the Edit QuickBooks Account slide-out appears only for companies set up in US dollars (USD).
How to Resync Invoices That Failed Because of the QuickBooks Tax Code
Go to Accounting > QB Sync Errors.
Click Moving Invoices or Storage Invoices.
Click the three-dot menu on the failed invoice.
Click Retry.
The invoice syncs to QuickBooks using the custom single-rate tax code and drops off the unresolved QB Sync Errors list.
Note: Changing the QuickBooks tax code mapping on the Tax Info tab does not change invoices that already synced to QuickBooks. The mapping applies to invoices that sync after you save, including failed invoices you resync.
How Combined Canadian Sales Tax Appears in QuickBooks Reports
With a custom single-rate QuickBooks tax code, QuickBooks records the full sales tax on each SmartMoving invoice as one combined amount. Your QuickBooks sales tax reports show that one combined amount for each invoice. When you file, your accountant splits the total into each tax and files each portion with the right agency.
Because the rates are fixed, each portion is a share of the total tax collected. The table below shows the calculation for each province that uses a custom single-rate code.
Province | GST portion (filed with the Canada Revenue Agency) | Provincial portion |
Quebec (14.975%) | Total tax × 5 ÷ 14.975 | QST: total tax × 9.975 ÷ 14.975, filed with Revenu Québec |
British Columbia (12%) | Total tax × 5 ÷ 12 | PST: total tax × 7 ÷ 12, filed with the BC Ministry of Finance |
Manitoba (12%) | Total tax × 5 ÷ 12 | RST: total tax × 7 ÷ 12, filed with Manitoba Finance |
Saskatchewan (11%) | Total tax × 5 ÷ 11 | PST: total tax × 6 ÷ 11, filed with the Saskatchewan Ministry of Finance |
For example, a British Columbia business that collects $1,200 in combined sales tax for the period owes $500 in GST and $700 in PST. A Quebec business that collects $1,497.50 in combined sales tax owes $500 in GST and $997.50 in QST.
Some businesses record a journal entry in QuickBooks each filing period to move the provincial portion into its own liability account, so their reports match their returns.
Talk with your accountant before you start syncing so they can choose the approach that fits your business. SmartMoving does not provide tax or accounting advice.
Businesses in HST provinces and GST-only provinces and territories use built-in single-rate QuickBooks tax codes, so they do not need to split the tax.
Best Practices
Create and map your custom single-rate QuickBooks tax code before you sync any invoices with Canadian sales tax.
Sync one test invoice and check its tax amount in QuickBooks before syncing the rest.
If your province changes its sales tax rate, create a matching QuickBooks tax code and update both the SmartMoving branch rate and the Taxed row on the Tax Info tab.
Share the GST and provincial split calculation with your accountant before your first filing period.
Troubleshooting
My invoice failed to sync to QuickBooks with "The tax settings for one or more of your SmartMoving branches does not match your QuickBooks tax settings."
This QuickBooks sync error usually means the tax code mapped to the Taxed row on the Tax Info tab is a combined code with two rates. Create a custom single-rate QuickBooks tax code, map it to the Taxed row, and click Retry on the invoice in Accounting > QB Sync Errors.
My custom QuickBooks tax code is missing from the Taxed dropdown on the Tax Info tab.
SmartMoving lists only active QuickBooks tax codes that have a sales rate, and it shows the rest below the table as not selectable. Check that the custom code is active and has a sales rate in QuickBooks Online, then click the gear icon and Update Lists on the QuickBooks account page.
The sales tax amount in QuickBooks does not match the amount in SmartMoving.
The rate on the QuickBooks tax code mapped to the Taxed row differs from the sales tax rate on the SmartMoving branch. Compare the two rates and update whichever one is wrong so they match exactly.
Note: For help setting up Canadian sales tax with QuickBooks, book a call with Remedy Payments.
FAQs
Do I need to set a purchase tax rate on the custom QuickBooks tax code?
No, you do not need a purchase tax rate on the custom QuickBooks tax code, because SmartMoving uses only the sales side of the code. If you track tax paid on expenses for input tax credits, set that up separately in QuickBooks Online with your accountant.
Can I use a built-in combined QuickBooks tax code if I change my SmartMoving branch rate?
No, a built-in combined QuickBooks tax code always causes a mismatch, whatever your SmartMoving branch rate is. SmartMoving sends one tax amount per invoice, and a combined code expects two. Use a custom single-rate tax code instead.
Will changing my QuickBooks tax code affect invoices that already synced?
No, invoices that already synced to QuickBooks keep their original tax code. The tax code mapped on the Tax Info tab applies to invoices that sync after you save, including failed invoices you resync.