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December 29, 2019
Question

How can I correct the gst in expenses to the amount i want. I purchase liquor and the deposits aren't taxable so it can't be calculated automatically.

  • December 29, 2019
  • 1 reply
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1 reply

December 30, 2019

Hi there,

 

I appreciate you reaching out to the Community. I'll be happy to assist with setting up taxes in QuickBooks Online. 

 

Based on what you've described, you'll have to set a custom tax and apply it to your transactions. QBO makes it easy to create a custom tax code and I'll show you how.

 

Here are the steps:

 

  1.     From the left menu, select Taxes.
  2.     Select Sales Tax. (Tip: If you use payroll in QuickBooks Online, you may need to select Sales Tax as opposed to Payroll Tax.)
  3.     Select Manage sales tax.
  4.     Select Add tax.
  5.     Under What type of tax do you want to add? select Add next to one of the below options and follow the prompts to complete set up.              

For Provincial:

 

  •     This option will automatically set up any new agencies necessary (such as new PST agencies) and the most common codes for that province/territory.
  •     It will prompt you to choose a province or territory from the drop-down. (Tip: Only provinces that you haven't yet set up will be listed.)            

For Group rate:

 

For Custom:

 

  •     This option is rarely used, since any code recorded this way will explicitly not report to any Federal or Provincial Tax Agencies (i.e., Canada Revenue Agency, Receiver General, etc), and won't help with filing/reporting to these types of agencies.
  •     You can add a tax in this category specific to your industry, such as tobacco, hotel, or gasoline tax. It could also be used to track sales to U.S. customers. Another use could be to set up a proper “out-of-scope” tax code to indicate that the sale/expense doesn't fall under any tax, if the company doesn't have one for any reason.
  •     Custom tax must be in a percentage format, not a particular dollar amount.
     

For more info on setting up taxes in QBO, checl out this helpful article: Set up Sales Tax in QBO. In case you have further questions, don't hesitate to reach out to our support team using this link