How to record GST paid to a simplified registrant

You can create an expense transaction in QuickBooks to record the unclaimable GST as part of the total cost of your subscription, TKP79.

Recording the GST this way ensures that the full amount you paid, including GST, is accurately reflected in your books. Since Dropbox is registered under the simplified GST program, the Canada Revenue Agency (CRA) doesn't allow you to claim this GST as an input tax credit (ITC). As a result, the GST becomes an unclaimable business expense and is recorded as part of your subscription's total cost.

To create one, here’s how:

1. Log in to QuickBooks.
2. Go to + New, then select Expense.
3. Add all the necessary information and ensure to select the correct scope of tax from the Amounts are dropdown.
4. In the Category details dropdown, select the correct expense account you use to track this transaction.
5. Enter the Amount and Sales Tax.
6. Once you’ve ensured everything is correct, you can click Save and close.

On the other hand, since this situation involves properly recording taxes and complying with tax regulations, I highly recommend contacting an accountant. They can offer professional guidance to help you avoid any tax filing errors and make sure your financial records stay accurate.

If you have other concerns, feel free to comment them below.

Thanks for your input Sheand. One question: you have stated both "GST becomes an unclaimable business expense" and "is recorded as part of your subscription's total cost".
Including it in the subscription's total cost would be incorrect if it is indeed an unclaimable business expense so this solution does not sound like it works.