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Jul 13, 2021 3:09 PM UTC
Question

Does the exclusive tax and inclusive tax capture all taxes for HST reporting?

What is the difference between inclusive and exclusive taxes?

1 reply

Jul 14, 2021 1:49 AM UTC

Hi there stylishyouteam,

 

It's important that you enter your taxes correctly on your transactions. QuickBooks Online is a great tool that keeps track of taxes for you so that you can have the correct amount when filing to the government. I can provide some information on the difference between inclusive of tax and exclusive of tax.

 

When it comes to the taxes reporting to the tax centre, both of these methods end up the same way. The difference is when entering these transactions. With the exclusive of tax method, when entering the amount of a transaction line, you will enter the amount without tax included, and the tax will be calculated and added to the amount afterwards. With the inclusive of tax method, you will enter the amount of a line that includes tax, and tax will be calculated within that amount. The choice is up to you of which way is best for you to enter transactions, and you can always switch methods on a transaction-by-transaction basis.

 

If you have any other questions, feel free to reach out here.