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Level 1

Recording GST for Expenses

Hi, I am needing assistance on how to record an expense with GST and PST. I am not registered to remit PST so that portion must go to the expense account and the GST is calculated on the subtotal (before PST). How do I enter this expense into the system. Currently, I am entering 2 expense lines for each expense:

-one being the subtotal (with GST added to this amount)

-the other being the PST (with the tax amount being exempt)


This is the only work around I have found regarding the GST being correct and the PST getting allocated to the expense account. Please advise if any other way to enter because now in my expense accounts I will have 2 lines for every expense (subtotal and PST).

2 Comments 2
QuickBooks Team

Recording GST for Expenses

Hi Canada1234,


Welcome to Community!  It's great to see you reaching out for guidance with recording your expenses with peace of mind.  QuickBooks Online Sales Tax feature is designed to help you reach your goals seamlessly.  I'll be happy to provide more information so you're on the right track with your work.


QuickBooks automatically creates a list of sales tax codes based on the province you're in when you set up the company.  To ensure your taxes are being recorded properly, I recommend taking a look at the Sales Tax Centre to ensure your tax codes are set up accurately.  You can also create a group tax to include both GST and PST so you can select it from the dropdown list in the sales tax column of your forms, rather than adding it on separate lines.  In your situation with PST being exempt, I suggest reaching out to your accountant for their expertise and advice for the best course of action.  If you don't have an accountant we can help you locate a ProAdvisor in your area. 


If you have any other questions, please feel free to reach back out.  We'd be glad to assist!


Level 1

Recording GST for Expenses

Sorry, but not a very helpful answer.  You didn't answer the question at all, just provided happy talk telling him/her to call their accountant.   

I have a similar problem.  I have an Ontario corporation so I am registered for HST, but I live in Quebec so when I buy for the business in Quebec, I pay GST and QST.  But I'm not registered with RevQue.  So while I can claim GST I can't claim QST, so its really part of the cost of the item.  

The GST then becomes 4.35% on my total cost.  But entering credit charges is problematic.  I have to manually amend each bill to properly assign the GST paid.  I tried to create a 'GST alone' tax code at 4.35% but QB Desktop insists on applying the 5% figure.  I've set the code up a couple of times and it says 4.35% in the rate, but it insists on applying 5%. 

Anyone got any ideas on what I'm missing in my logic or how to do this?   

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