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mwong4480
November 28, 2019
Question

I noticed PST amounts paid on expenses are not getting picked up in the PST tax filing function?

  • November 28, 2019
  • 29 replies
  • 0 views
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29 replies

JamesM
November 29, 2019

Hi there, 

 

I appreciate you reaching out to the Community. I'll be glad to share more info about PST in QBO. 

 

Provincial Sales Tax (PST) for British Columbia, Saskatchewan and/or Manitoba is recorded differently than GST or HST in QuickBooks Online when collecting sales tax on expenses and purchases.

 

Previously, if you made a purchase that had PST applied, QuickBooks Online would create a journal entry that broke the PST out into a separate account, similar to the way GST and HST are treated in other provinces. However, while the PST you collect on sales must be remitted to the province, the PST you pay on expenses does not get deducted from those amounts when you file your PST. Due to this, PST is now included in the expense total or capital item you've purchased.

 

This way of accounting for PST ensures that your company's accounting is accurate and will save you time at period-end.

 

Let me know if this helps. I'll be on standby in case you have other questions. 

bshelton12
March 3, 2020

Hello,

 

I'm having the same issue with QB Online SE version. If I enter an expense as GST/HST applicable the program is NOT adding the PST amount to expense (just the amount before GST/PST). The only way I can somewhat fix this problem is to enter the expense as GST only. This isn't correct of course and the GST calculated is now incorrect.

 

Appreciate your help!

bshelton12
March 3, 2020

Just wanted to add that I know that PST on supplies should not be included in the PST report as per your reply to the original query (it's not a flow through tax like GST); however, I know that the PST should be added to expenses/cap assets.

 

When I view the profit/loss report and drill down on supplies (only one entry so far) the expense amount is the pre-GST/PST amount!

Elite Drywall
April 6, 2021

Hi,

We have the same problem. We could deduct the PST paid on materials but the QB does not add these amounts to paid on purchases. Did you fix this issue? How can we file a return correctly if the QB will not add the paid PST? If there is no quick solution for this we will be forced to switch to an other accounting program. 

LauraAB
April 6, 2021

Hello Elite Drywall,

 

I want to assure you that I hear your concerns and appreciate the need for a software that's accounting for your sales taxes with accuracy and the way you need them to be. It's important to me you have the correct information for working with sales tax, including PST, in QuickBooks Online.

 

QuickBooks Online is designed to adhere to the federal and provincial regulations for sales tax collection and payment on income and expenses. With that in mind, there are certain circumstances PST isn't reflected in the calculations for filing, as has been mentioned by my colleague earlier in this thread. This may be what you're running into here with PST on expenses, and to see if that's the case with the sales tax you're working with, I recommend connecting with the CRA or an accountant.

 

You can connect with an accountant right in QuickBooks Online using the My Accountant tab. There, you can invite an accountant you're already working with as a user or you can use the Find a pro to help button to see our directory of QuickBooks-certified professionals in your area.

 

If after speaking with the CRA or an accountant you're certain that PST should be calculating, please don't hesitate to reach out to our team so we can look at this situation with your more closely, troubleshoot, and determine the best course of action to reach a resolution. Here's how to reach us.

 

Schedule a Callback or start a Chat: click (?)Help in the upper right in QuickBooks Online > type and enter "Contact support" into the QB Assistant > click Contact Us > explain your situation > click Let's Talk > choose Get a callback or Start a Chat.

Social Media: Facebook, Twitter, and Instagram.
Support hours are from Monday to Friday between 9 a.m. and 8 p.m. ET.

 

I hope this helps you with getting back on track. Take care.

dianaenglish
December 7, 2022

I think I found a workaround for this problem of how to manage deductible PST.

 

If you want to enter deductible PST for a purchase of merchandise for resale, don't add it automatically in the sales tax column combined with GST.  Enter the invoice amount before tax, add the GST in the sales tax column, and then add the PST as a line item under the PST payable category (sales tax Out of Scope).  

 

Then, when you go to Chart of Accounts, select your PST Payable account, Run Report and enter the dates for the month you are reporting and you will see the refundable PST amounts as credits (minus numbers).  

 

You will probably also see the last PST payment you made in this report so you have to deduct it from the total to get the amount payable.

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