HST in B.C.

[lhbc-donate]

Our church is a registered charity but we are not registered for GST/HST, (we don't sell anything) we recover this 50% GST tax we paid on all our expenses by claiming a PSB rebate once a year. Power Church automatically tracked this for us in the "Accounting Setup Options" by entering the %age of GST to reclaim. Every time I added an invoice, PC prompts me for the amount of tax paid & automatically calculates the 50% and adds a line for the reclaimable tax to the distribution list .
On July 1, 2010, B.C. will now have HSTat the rate of 12%,
5% will represent the Federal part (old name GST) - We are entitled to reclaim 50% of this
7% represents the Provincial part. - We are entitled to reclaim 57% of this
** It will be very important to remember that the HST is composed of a Federal part and a Provincial part for such things as how to calculate the PSB rebate.
I spoke with GST/HST and verified the EXTRA 57% we can claim on our PSB rebate form.
Unfortunately because they have not seen the rebate form yet they can't say if we will have to fill in 2 lines - the 50% claim & the 57% claim. They said if I can change power church's reclaimable tax percentage to 54.08% I would not have to calculate each of the prov & fed portion of the HST on all of our expenses.
I made a new Asset account and plugged in my 54.08% but the screen reads WARNING: Default equity account is not in all funds. We have 2 funds: 01 is General Operating and 02 is Building Reno
I can't figure out how to fix the warning and I'd like to know if anyone is BC can verify that I am doing this HST correctly.
Thanks very much

[Jeff]

The warning you received has nothing to do with the change you made to the GST tax percentage. The warning is saying the default equity account (usually the unrestricted net assets account) which is also setup on this accounting setup screen is not in each of your accounting funds. Usually this is the 3110 account. You can make this warning go away by making sure this account exists in both your 01 and 02 funds.

In June we released a maintenance release for version 11 which adds new features to help track HST for canadian customers. Here is a link to the Maintenance Release notification http://powerchurch.com/forum/viewtopic.php?f=17&t=4967

[lhbc-donate]

Thanks Jeff,
I am using Version 10/10.4