Expense GST category

Hello ysong17,

You can set the Out of Scope tax code for your expenses if your not registered for BAS at the moment. Out of Scope tax codes will not be reported in your BAS and will not calculate GST on your expenses. Let me guide you how to set your default tax code to Out of scope.

1. Click on the Settings icon.
2. Click on Account & Settings.
3. Click on Advanced tab.
4. Click the pencil icon under Accounting section.
5. Locate Default tax code selection and set to Out of scope.
6. Click on Save, and Done.

Once done, when you create your transactions in QuickBooks Online the transaction will set to Out of scope tax code.

As always you can drop a comment below if you have more questions about GST. The Community is here to help you.

Hi ysong17,

Allow me to join the thread and share with you some information. 

You can set the tax rate to out of scope for sales and purchases if your business is not registered for GST. Also, you can follow these steps on how you can set the default tax rate in QuickBooks Online. 

1. Go to Gear icon and select Account and Settings. 
2. Select Advanced.
3. On Accounting section, click the drop down for Default tax rate selection and make your selection.
4. Click Save, then click Done.

As always, you can reach out with your accountant for any accounting advice. Feel free to check on this article about GST Overview for QuickBooks Online. 

Let me know if you have any other questions. Have a great day! 

Hello ysong17,

Thanks for getting back to us. That is correct. If you're not registered for GST/BAS you can set all expenses to Out of Scope tax code to not calculate GST on the transaction. 

Also, you can check this link to learn more about the GST in QuickBooks Online: GST Central.

As always feel to post a comment below if you have more questions about QuickBooks Online. The Community is here to help you.