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Ilawton
September 6, 2024
Question

How to account for USD purchases and their taxes in QBO online canada

  • September 6, 2024
  • 1 reply
  • 0 views

Hey, 

I'm from Canada and when I travel to the US for business and make purchases they are in USD. To account for this I just take the amount in CAD from the CC transaction and use that for the expense. What tax category do I use for purchases like this? Thanks - Ian 

1 reply

T
Trish_T
September 6, 2024

Hi Ilawton,

 

It's a pleasure to see you in Community.  Welcome!  Recording your expenses accurately in QuickBooks Online, ensures your books remain balanced.  I would be happy to provide some insight here!

 

When recording a bill/expense for items purchased outside of Canada, you want to ensure the correct sales tax is applied.  Click here to learn more about common sales tax codes.  If you're not absolutely confident in which code to apply, I recommend speaking with an accounting professional for their expertise and best course of action. If you don't have an accountant, we can help you locate a ProAdvisor in your local area. 

 

I would also like to provide this helpful guide for your reference, to record a sales tax expense on imported goods. 

 

Feel free to reach out again, if you have any other questions. We would be happy to help!

I
IlawtonAuthor
September 6, 2024

So I would record it as out of scope because there is no Canadian/ontario taxes on it and it is not a good to import? 

A
Ana_Montreal
February 6, 2025

Was there ever a clear answer for this? I have a ton of expenses in Europe and there is no Canadian tax (obviously there is VAT but it is included and I am guessing the Canadian Government doesn't care one way or another). Is this Exempt or Out of Scope? I cannot find any clear examples of expenses in foreign countries anywhere?

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