Generally, sales tax is not charged on an initial deposit or pre-payment. Sales  tax is, however, charged on subsequent Draws.

 

Resolution for 'charged on subsequent Draws issue: 'do you charge hst when accepting deposits' available: Yes.

The charged on subsequent Draws issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the charged on subsequent Draws issue yourself by looking for a resolution described in the article. If it is a complex charged on subsequent Draws issue or you are unable to solve the issue, you may contact us by clicking here or by using other charged on subsequent Draws support options.

For more information about resolving issues related to charged on subsequent Draws in Quickbooks/QBO or to get support for the issue 'do you charge hst when accepting deposits', click the link below: