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StoneContracting
February 9, 2022
Question

Travel expenses none GST

  • February 9, 2022
  • 1 reply
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We travel a lot for work (stay in AirBnb, holiday rentals, chalets in caravan parks) for generally 5 days in a row and buy grocery's while staying away... accountant said we can claim accommodation and food legally but Airbnb and holiday rentals don't have GST on invoice... how do I code this in Quickbooks as a business expense so its not just a owners drawings cost? And does it make any difference to BAS/tax if its coded as owners drawings or travel expense code?? (as in is it better to not code it owner drawings?) I do have a 464 travelling expenses code, if that's the right code to use which GST option do I use? Gst free purchases or out of scope??

Sorry for all the questions just trying to understand how best to code all these transactions for the business!

Thanks heaps.

1 reply

I
IntuitAika
February 9, 2022

Welcome to the Community, StoneContracting.

 

When creating an expense, you can select GST-free purchases and Out of Scope tax. The difference between these two codes is that transactions coded as GST-free purchases are reported on your BAS while transactions coded Out of scope are not. Also, you use out of scope tax code if you allocate a transaction to an asset, liability and equity account. 

 

Also, I'd recommend to consult an accountant to determine the correct tax code and account to be use on your transactions for accuracy on your tax reporting. 

 

Here's a comprehensive article on what the difference is between these codes: Simpler BAS GST bookkeeping guide. 

 

Feel free to message us back if you have any other questions. Have a nice day! 

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