Financial Services

Financial Services

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1.1.4 What Happens to the Taxes Collected on Sales? How is it Accounted For?

Tax collected from a sale is not revenue for Queen's. Any tax collected should be recorded to the appropriate tax account and the same fund and department as the revenue associated with the tax collected (see listing of accounts below). If Queen's is acting as an agent, please refer to the section titled: Taxes Collected on Sales where Queen's has an Agency Agreement (section 1.1.5).

As part of regulatory requirements, once a month Queen's zeros out these tax accounts and remits this tax to the government (CRA) by filing GST/HST returns.

In order to fulfill its tax obligations and file the GST/HST returns correctly, Queen's uses a number of accounts to keep track of GST/HST. The following is a list of commonly used accounts for sales:

Account Account Name Description
210024 AP-GST GST collected on invoices and GST rebates booked on purchases (book rebates)
210080 AP-HST Payable Collected HST collected on sales, HST self-assessed on purchases (including foreign sales)
210085 PST-Manitoba PST self-assessed, collected and to be remitted to that Province.
210087 PST-Quebec PST self-assessed, collected and to be remitted to that Province.
210088 PST-Saskatchewan PST self-assessed, collected and to be remitted to that Province.
210089 PST Payable-BC Effective April 1, 2013