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Okoolat
September 4, 2020
Question

Question about storage and tax rate

  • September 4, 2020
  • 1 reply
  • 0 views

Hello I have three questions:

 

1) What's the correct accounting for charging customers in another province a tax code that applies to them but not you? For instance, if you want to charge a customer in Ontario 13% HST but you are in BC where only the 5% GST applies? You shipped a product to them.

 

2) Similarly, how do you record being charged a tax rate that does not apply in your province? For instance, a courier is charging you for the shipment in the aforementioned example.

 

3) Let's say you are a wholesaler of office supplies and have a large warehouse with extra room. If you agree to rent some of the room in the warehouse to a company to store their inventory, how do you go about invoicing them on QuickBooks Online? What are the steps?

 

Thanks a lot in advance :]

 

1 reply

L
LauraAB
September 4, 2020

Hello again Okoolat!

 

I love that your business expands the country with your customers and suppliers, and I can see how knowing which sales tax codes to apply when would be tricky in these instances. I'll point you in the right direction for learning how to handle these sorts of situations to record them in QuickBooks Online.

 

The first place I recommend starting is the Canada Revenue Agency website. There are a number of great articles there that go over sales tax, when to charge it, and how. I've pulled a few articles that may be useful for you to learn how to approach your customer and supplier transactions with sales tax.

If you're still not feeling certain, contacting the CRA or an accountant is the next step to take. As a tech support agent, I'm able to let you know how the program works, such as being able to set up sales tax codes in the sales tax module or using the drop-down menus on transactions to apply them, but I don't have the training to advise on which taxes to use when and how.

 

I know I went over the My Accountant tab with you last time, but I want to ensure you have the information you need about it. This tab offers you the chance to invite an accountant you're working with as a user to your account and there's also the Find a pro to help button, which brings you to our list of QuickBooks-certified accountants so you can find an expert of assist you.

 

An accountant will also be able to offer guidance on how to approach the invoicing your referring to with the warehouse. It may be as simple as using the invoice feature and then recording payments received, but the accountant can ensure you have the proper setup for your needs.

 

I hope this has been helpful for you. Wishing you the best moving forward!

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