There is no direct functionality to configure and manage sales tax so the report shows 50% GST and 50% QST in meal and entertainment, Nadia. However, you can manually create sales tax on each transaction or line item. Let me provide step by step through the process.
Since you mentioned that you are from Quebec, you will have only one tax agency card named Revenu Québec. Please use this agency when setting up the GST portion of the new rates.
Here's how:
- Locate the Canada Revenue Agency card (if present) or the Revenu Québec card (if the Canada Revenue Agency card isn’t present) and select Add Custom rate.
- Enter the Tax name as 'GST Liability’.
- Check the I pay this on purchases box.
- Enter the Tax on purchases rate.
- Select Liability from the Account drop-down.
- Choose Input Tax Credits (ITCs) from the Show tax amount on return line drop-down menu.
- Select Add.
- Next to the newly created tax rate, select Make inactive. This will prevent this rate from showing up in your Sales and Expense forms but still allow you to add them to a group rate.
When creating sales tax rates for eligible QST. Here's how:
- Locate the Revenu Québec card and select Add custom rate.
- Enter the Tax name as QST Liability. (Note: Visit provincial government websites for the most recent QST rate.)
- Select the I pay this on purchases box.
- Enter the Tax on purchases rate as the appropriate QST rate.
- Select Liability from the Account drop-down.
- Choose Input tax refunds (ITRs) from the Show tax amount on return line drop-down.
- Click Add.
- Next to the newly created tax rate, select Make inactive. This will prevent this rate from showing up in your Sales and Expense forms but still allow you to add them to a group rate.
For additional resources, you can check this article as your guidelines: Set up sales tax rate for Meals and Entertainment in QuickBooks Online.
For complexity of tax laws and the specificity of applying 50% rates for meals and entertainment expenses, it’s beneficial to consult with a tax advisor.
After processing your sales with the correct tax rates, I've included an article that'll guide you in filing your taxes in the future: File your sales tax return and record sales tax payments in QuickBooks Online. This offers guidance to help you avoid late submissions and additional fees.
If you need any further clarification or assistance in configuring the managed sales tax, our support team is always here to help!