To record an expense for Canadian Sales Tax paid on imported goods, perform the following steps:
- Go to Expenses, then select Expenses (Take me there).
- From the New transaction dropdown menu, select Expense.
- Under Account details, on the first line, in the Account column, select an expense account related to the imported goods.
- Enter 0.01 in the Amount column.
- Select a tax code that represents all tax types paid.
For example, if you paid both GST and PST on the imported goods, select a GST+PST code. - On the second line, in the Account column, select the same account.
- Enter -0.01 in the Amount column.
- Select “out of scope” for the tax code.
- Edit the fields below the Subtotal to reflect the amount of tax paid for each tax type.
- Select Save.