I am a home builder and am PST exempt for building supplies (since we collect it on the final sale price of the home). When I buy (for example) a sink from Amazon and they charge me PST - where do I put this so it shows up as a credit when I'm filing my PST return.
My accountant told me I should enter it on a separate line in my credit card charge and I had used the PST payable account. But when I run the "file sales tax" for the PST return it says my "PST return is NOT ready to file" and these amounts just end up showing up in an Unassigned Sales Tax amounts line and not credited against what I owe. Help!
Hello there, Bonnie9.
To know how to account the PST that was paid on PST exempt items, I suggest contacting QuickBooks Technical Support (CA). They have more tools that can better walk you with categorizing the sales tax.
Here's how to get in touch with them:
You're always welcome to post here in the Community if you have other concerns. Have a good one!
PST is not the same as GST in that it is not offset with what you collect. The amount you collect is simply submitted to the Minister of Finance in your Province. You are entitled to a "Commission" on each remittance.
When contractors pay PST, the PST amount is incorporated in the cost. For instance: You order fixtures online for a bathroom reno. The bill is for the Fixture ($100.00), Delivery ($10.00) and Both Provincial and Federal Sales Tax (in BC &% PST + 5% GST). The bill would be recorded as $110 (Line Item) + $13.20 Sales Tax.
The Client Invoice would be $123.20 (cost of the fixture) Line Item = the appropriate Tax Code.