I appreciate you reaching out to the Community. I'll be glad to share more info about PST in QBO.
Provincial Sales Tax (PST) for British Columbia, Saskatchewan and/or Manitoba is recorded differently than GST or HST in QuickBooks Online when collecting sales tax on expenses and purchases.
Previously, if you made a purchase that had PST applied, QuickBooks Online would create a journal entry that broke the PST out into a separate account, similar to the way GST and HST are treated in other provinces. However, while the PST you collect on sales must be remitted to the province, the PST you pay on expenses does not get deducted from those amounts when you file your PST. Due to this, PST is now included in the expense total or capital item you've purchased.
This way of accounting for PST ensures that your company's accounting is accurate and will save you time at period-end.
Let me know if this helps. I'll be on standby in case you have other questions.
I'm having the same issue with QB Online SE version. If I enter an expense as GST/HST applicable the program is NOT adding the PST amount to expense (just the amount before GST/PST). The only way I can somewhat fix this problem is to enter the expense as GST only. This isn't correct of course and the GST calculated is now incorrect.
Appreciate your help!
Just wanted to add that I know that PST on supplies should not be included in the PST report as per your reply to the original query (it's not a flow through tax like GST); however, I know that the PST should be added to expenses/cap assets.
When I view the profit/loss report and drill down on supplies (only one entry so far) the expense amount is the pre-GST/PST amount!
QuickBooks Self-Employed is designed with a focus on the sales tax settings most common for self-employed Canadians. This ensures consistency, and makes it easy to produce accurate tax returns. For help making sure everything is set up correctly for your business operations, please reach out to QuickBooks Self-Employed's dedicated support team.
Don't be afraid to get in touch! It's important to ensure your sales tax records are accurate.
When I click on the link you sent this is what I get (scroll down to bottom of this post). When I click on assistant in the browser it says it doesn't work and to try again later (have tried several times).
And when I try the assistant in my iOS device clicking the + symbol this doesn't work either. FYI your website info is out of date (the assistant is in the top right hand corner of the App). Within the iOS device assistant I was finally able to chat with a live human.
This individual was very friendly but unable to help me so she escalated the issue to the product support team. I've since heard back from them and apparently QB SE doesn't have the ability to track PST paid on purchases but they would consider it as a future modification.
Please should be made aware of this glitch so that when they do their taxes they know that their expenses subject to PST are understated by 7% (in BC) or whatever the other rates are in non-HST provinces.
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This is incorrect. PST paid on purchases is to be deducted from the total remittance, as long as they are expenses used for resale, such as materials. This is laid out very clearly by the ministry of finance, as well as on PST filings.
Please fix your system. It's pretty ridiculous you can't even get a report to show PST paid.
There should be a PST refundable option and a PST non-refundable option.
Hi ChelBooks. Thanks for joining the conversation. As explained above by my colleagues, the PST you pay on expenses does not get deducted from those amounts when you file your PST. I know this isn't what you were hoping for, and I'd encourage you to touch base with our tech support team if you'd like to discuss other options. Each account is unique, and I want to make sure you're given the best advice based on how you've set things up on your end.
When you click on the contact link, you're going to make a product selection. If you're using QuickBooks Self-Employed, please click the Self-Employed product portal to get connected to the proper support team.
We don't charge or submit PST, only GST.
Like you, I want the GST amount correctly pulled from an expense that includes both GST & PST. The remaining balance (the cost plus the PST) is my real cost for the item.
I don't want the PST assigned to a completely separate expense account, I want it included in whichever category the expense is assigned to.
Make a new tax code that you can use when an expense has both GST & PST charged.
If you make the tax amount 4.6729% it will calculate the correct amount of GST that you paid and add that to your ITC's and the balance is the cost of the item including the PST
For example, if your total was $112.00 for an item that was $100 + 5% GST & 7%PST it will make the GST paid as $5 and the actual expense as $107
$5 goes to your ITC account, the other $107 goes to whichever expense account you assigned it to.
Hope that helps!
I don't charge PST (not required on our services), therefore cannot claim it back. It becomes part of my expense for whatever we purchased.
I don't have the PST separated out to a PST expense account. I found a work-around to have it included in the actual expense cost.
When entering the expense that includes GST AND PST, select the option TOTAL INCLUSIVE OF TAXES
See my original explanation of my work-around...
The GST goes to a separate GST account and the PST remains part of the expense total