Learn, step by step, how to record sales tax expenses for importing goods into Canada using QuickBooks Online.
How to Record a Sales Tax Expense on Imported Goods in QuickBooks Online
The following is a guide on how small business owners can record sales taxes on importing goods into Canada. It is written specifically for users of QuickBooks Online. Here are the steps:
- Click on the “Plus ( + )” button and enter a new expense.
- Add one line item to the expense account connected to the imported items for $0.01.
- Choose a tax code that includes all tax types that you paid. For example, if you paid both PST and GST on imported goods, then select the GST+PST tax code.
- Add a second line item within the same account for “out of scope” tax code and -0.01.
- Next, edit the boxes at the bottom of the page to the amount you paid for each tax category.
- Finally, click the “Save” button in the bottom right corner to save the transaction.
Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.