record rent payment with GST

acctlearner · ‎December 05, 2023

Dear community members,

I am learning how to record rent with GST in QBO for a retail store. I understand that when it sells products in inventory, it collects GST from customers and needs to remit to CRA later. In the case of paying rent $1000 with 5% GST ($50), I think we record $1000 in Rent Expense account. But in which account do we record $50? Also I hear from people that CRA will only give back a certain percentage of $50. How is the percentage determined for a small retail store? Could this ever be 100%?

Thank you very much.

Alex M · ‎December 06, 2023

Hi there acctlearner,

It's important that all your transactions are correctly entered for your books to be well balanced. QuickBooks online is a great tool able to help you keep track of sales and expenses so you can see the profit of your company. I can point you in the right direction for assistance with taxes on transactions.

To know if you need to claim 5% tax that is refundable, or if another percentage should be given back, I recommend speaking to your accountant or local tax expert. They'll be able to assist in making sure the taxes on these transactions are correctly entered so that your filing can be accurate. You can invite your accountant to your QuickBooks Online account by clicking on the My Accountant tab. There's also an option to find an accountant near you in that section by clicking on the Find a Pro to help button.

If you have any other questions, feel free to reach out here.

acctlearner · ‎December 06, 2023

Thank you for replying. I am not a business owner or store keeper, although I hope to be so in the future. Now, I am just teaching myself on QBO to get an entry job in this area in the future.. I don't have the luxury of getting accountants to help me on this. So for this question, I hope to get some online references on how CRA determines the percentage of $50 GST related to rent to be returned.

Amanda-B · ‎December 06, 2023

Welcome back, acctlearner.

In order to receive the proper information, I encourage you to visit the CRA website. In addition to this, you can create recurring transactions for your rent payments by following the steps in this guide. I will be leaving this post open for other Community members to chime in and share their experiences.

If you have any other questions, feel free to reach back out here.

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record rent payment with GST