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A
andrew777
June 13, 2021
Question

How do you record GST that you owe on a purchase from a non-resident vendor?

  • June 13, 2021
  • 1 reply
  • 0 views

I purchased digital services online from another country. They do not charge GST on their products.

According to what I've read I still need to pay GST on this purchase, but it is my responsibility to pay it myself.

 

So my question is:

 

How do I document, along with my expense entry, that I owe GST to the CRA for this purchase from a non-resident vendor?

 

This article for example states that I have to pay the tax: https://www.cpacanada.ca/en/news/canada/2018-09-13-tax-on-digital-services

Also I just discovered from this article that next month non-resident vendors will have to start charging sales tax themselves: https://blog.taxamo.com/insights/canada-tax-cross-border-digital-services

So this sort of transaction that I'm asking help for, won't be an issue after next month I suppose,

1 reply

J
JamesM4
June 14, 2021

Hi andreww777,

 

QuickBooks Online is a powerful program that simplifies the way you manage your transactions. I'd be glad to steer you in the right direction so you can get the resolution you need. 

 

Making sure you're recording your transactions properly is an essential step for maintaining clean books. Based on what you've described, I'd recommend reaching out to an accounting professional for expert advice on how to record the transaction. If you're not in contact with a professional, don't worry, you can search for one using this link here. In the meantime, check out this helpful article with more info on how to Categorize and match online bank transactions in QuickBooks Online.

 

I'll also leave this question open in the Community so other accountant users can share their advice. Otherwise, feel free to ask other questions, I've got your back. 

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