How to account for USD purchases and their taxes in QBO online canada

Hi Ilawton,

It's a pleasure to see you in Community.  Welcome!  Recording your expenses accurately in QuickBooks Online, ensures your books remain balanced.  I would be happy to provide some insight here!

When recording a bill/expense for items purchased outside of Canada, you want to ensure the correct sales tax is applied.  Click here to learn more about common sales tax codes.  If you're not absolutely confident in which code to apply, I recommend speaking with an accounting professional for their expertise and best course of action. If you don't have an accountant, we can help you locate a ProAdvisor in your local area. 

I would also like to provide this helpful guide for your reference, to record a sales tax expense on imported goods. 

Feel free to reach out again, if you have any other questions. We would be happy to help!

So I would record it as out of scope because there is no Canadian/ontario taxes on it and it is not a good to import? 

Was there ever a clear answer for this? I have a ton of expenses in Europe and there is no Canadian tax (obviously there is VAT but it is included and I am guessing the Canadian Government doesn't care one way or another). Is this Exempt or Out of Scope? I cannot find any clear examples of expenses in foreign countries anywhere?

Hi Ana_Montreal,

Thanks for joining this thread. QuickBooks Online is a great program that gives you the ability to easily track your sales and expenses. I'd be glad to to point you in the right direction. 

Based on what you've described, I encourage you to contact an accountant. They'll be able to point you in the right direction to categorize your transactions to ensure the correct tax is in your transactions. If you don't have an accountant, you can find one near you by clicking on My Accountant on the left navigation menu> and then Find a pro to help. You can also use this link to find out more about sales tax and international taxes for your business.

Let me know if you have questions, I'll be happy to help.