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sherwoodmasonry2
Level 1

Can i connect my GST on purchases to my chart of accounts. I have a balance accumulating on Sales, but would like to offset these with GST paid on expenses?

 
1 Comment 1
JessT
Moderator

Can i connect my GST on purchases to my chart of accounts. I have a balance accumulating on Sales, but would like to offset these with GST paid on expenses?

You can only set reclaimable taxes from purchases on a Custom tax, sherwoodmasonry2.

 

I’ll guide you to create a custom agency with a custom tax, and we'll use it on your existing and future transactions. In this way, your total tax on purchase will offset your sale tax within a tax period.

 

During the setup, you'll enter a tax rate (reclaimable) and the tax agency details. Later on, you'll only need to add tax rates under that agency. 

  1. Go to Taxes and click the Manage sales tax button.
  2. Click the Add tax button.
  3. Click Add in the Custom section.
  4. Enter the first tax name under that agency, enter the agency name, and other details. Please refer to the sample on the screenshot below.
  5. Be sure to place a check mark in the I pay this on purchase checkbox and enter the tax rate.
  6. Place a check mark in the Tax on purchases reclaimable checkbox.
  7. Click Add.

 

When you're done, you'll notice two taxes on the Taxes page. One of them is the reclaimable tax you created which you will assign to your existing sales and purchases transactions. Then, you can run your tax return after.

 

 

 

If you have other questions in mind, please don't hesitate to post back.

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