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T
TDogg
February 1, 2021
Question

billable expenses charging wrong sales tax

  • February 1, 2021
  • 1 reply
  • 0 views

Contractor located in BC so we only charge the 5% GST, not the 7% BC PST.  Anything we purchase that has the PST just gets automatically rolled into the COGS.   Starting experimenting with the billable expenses feature as it seemed potentially useful when entering bills to tag them to a customer for future billing on our cost-plus jobs.  Didn't notice until month end that QB had gone and charged the customers PST on the "markup" line items for the billable expenses despite my inability to charge PST.  While I paid PST on the items, I don't collect PST on a product my company immediately installs on a customers site.  How do I force the "markup" line on the customer invoice ... the one that says "your customer wont see it" ... to always be GST only?  Is this a feature setting or a bug?  The actual line item on the invoice was correctly taxed, but not the markup line.

1 reply

C
CaitlinOG
February 2, 2021

Hi TDogg, 

 

It's great that you're using QuickBooks Online to streamline the management of your business and keep organized. I can see that this particular situation can cause some issues with the tracking of your sales taxes, and I want to ensure that you're able to charge the proper sales taxes. 

 

To ensure that the customer is only charged GST on the billable expenses, you'll need to manually change the tax code of that line item when creating the invoice. There isn't a way to set the billable expenses to automatically be GST only at all times, as it defaults to whichever tax code that was selected while creating the billable expense. If this is something that you'd like to see included in the program, I recommend submitting Feedback to our product development team so that your ideas can be heard. Here's how to submit feedback from within your QuickBooks Online company: 

 

  • Navigate to the Gear icon at the top, then Feedback.
  • Enter your comments or product suggestions then select Next.
  • You'll be provided a list of suggested Help articles related to your comment. You can read through them or select Skip and send message.
  • From the drop-down, choose the appropriate category, then select Send message.

 

Your feedback will then be sent to our development team for consideration. 

 

If you have any other questions please let me know! 

T
Turk2
December 8, 2023

This is still an issue in Canada. If the product/service code setup provides the choice of differing tax codes for Sales as opposed to Purchases, why doesn't QBO follow that set up. Every company in Canada would have this  problem when trying to use the Billable Expense feature.

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