Question
Managing tax
I recently switched to Quicbooks online from Quickbooks desktop (2010). I am having difficulty managing tax. I reside in BC where there is GST and PST, but can only claim the GST as and ITC credit. I have spent 1.5 hours online with Quickbooks support and am no further ahead than when I started. I want to create a tax line that I can apply to expenses, where the base amount + the PST will be charged to expenses, and the GST will go the ITC tax line. I pay $100, I also pay 7% PST of $7.00 and 5% of $5.00 GST. How do I set up the tax option to record this correctly. ($107 as an expense, and $5.00 as the GST).