How do I input expenses when I need to track GST for remittance, but I don't need to track PST? My expenses often have both GST and PST though.

Hi there elisawiebe,

It's important that all your transactions be entered correctly for your books to be well balanced. QuickBooks Online is a great tool to help you keep track of tax on sales and expenses so you know the amount owed to the government. I can point you in the right direction for assistance. 

To enter this tax, what you could do for the PST would be similar to how you would create the ineligible portion of the Meals and entertainment tax. To do so, go to the Tax section, then Sales tax. Select Manage Sales tax, and next to your main tax agency, click on Add custom rate. Create a new rate, named something similar to PST ineligible, then select both the option that you pay this on purchases, and collect on sales. Add the percentage wanted for your PST, then select Expense as the account. Don't forget to save.

You can then create two new group rates, one for expenses, and one for sales. Still in Manage sales tax, section, click on the Add tax button, then select Combine taxes in a group rate.  For the first, select GST (Sales) and your new tax, also with Sales in parentheses beside, and in the applicable on for the second line, select the Net amount option. Do the same for the taxes, but select the ones with (Expenses) beside the tax name.

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

Hi Thanks so much for the help. I'm having one issue, when I go to group the taxes, I'm not seeing a GST(Sales) option, I am seeing these options: GST/HST (ITC) ZR, GST/HST ZR, GST (ITC), GST EP, GST ES, or just plain GST. Its making me think I gave not set up GST correctly? for invoicing I have used just GST 5% thus far. 

I see. When you click on Taxes > Sales Tax > Manage sales tax, do you see the tax code you'd like to use? If not, you're more than welcome to manually add it using the guidance provided in this article here. However, if you'd like to edit the tax rate, you can follow these steps here. Let me know if this info helps, I'll be one message away. 

Well I use GST, I believe thats the code I want to use. But with Alex's instructions on how to group a new rate, I wasn't sure if I could follow the same process as he broke down, using GST instead of GST (Sales). Because I don't have that option {GST (Sales)} I became concerned I was maybe missing something.. I *just* started collecting GST on Oct 1, this is brand new to me. Please let me know if I can group the taxes as mentioned in the first response, using GST.

Hope that clarifies my concerns. Thanks.

The Manage sales tax function allows you to add both single rate taxes and group rated taxes. Since GST (Sales) isn't showing on your account, you can add it using the steps I've provided above. According to Alex's instructions, you'll then be able to use the GST(Sales) to create the combined taxes. 

ok, will I need to go back to my previous invoices and update the tax category to the new GST (Sales) I create so I don't have two different GST categories on my balance sheet? My apologies for my lack on knowledge in this regard, bookkeeping is not my strong suit.

In order for the tax code in question to reflect on the previous invoices you'd have to manually edit them on your end. That being said, I recommend consulting with an accounting professional for expert advice on how to best handle this. You can search for QB accounting specialists on our site using this link here. Otherwise, here are some helpful  tutorials/webinars you can reference in order to cut the learning curve for QBO. Feel free to ask other questions.