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bell39-shaw-ca
January 20, 2022
Question

QB records the PST payable on invoices, but it does not adjust the PST payable for the PST purchases. How do you correct this? If you journal it - to what accounts?

  • January 20, 2022
  • 1 reply
  • 0 views
Is there away to record PST "ITCs" the way it is done with the GST payable, and GST ITCs?

1 reply

McBrideBookkeeping
McBrideBookkeeping
January 20, 2022
Hey Bell39,
What province are you in?
Check with the local tax authority first because here in BC there is no such thing as "ITC's" for PST which is why QBO does not track them.
Unfortunately for us, PST paid on purchase a is NOT refundable through your standard PST return
PST paid is just another cost which is why it is posted to the same ledger as the expense you are posting.
Maybe it is different where you are but here in BC we can only claim back PST 'paid in error' using a special form and lengthy process. 🤯👎
Like GST it is an "end-user" tax so If you are buying goods for resale they should be sold to you exempt of PST but YOU have to tell them at point of sale.
I hope this helps get you on the right track

Please mark this answer as a helpful solution if it answers your question
Thanks
McBride Bookkeeping
N
Nick K
January 20, 2022

Hi bell39-shaw-ca.

 

Having your sales tax show up in the correct accounts for purchases and sales is crucial to keep your filings and accounts correct and up to date. I'd be happy to point you in the right direction for this.

 

As McBrideBookkeeping stated PST sales tax is different depending on which province you're in or tracking for. I recommend contacting the CRA to find out about the sales tax laws in the province in question. You can also reach out to your accountant as they're trained in these laws and how to make these kinds of entries. If you don't have an accountant no worries, we can help. You can find an accountant by going to My Accountant>Find a pro to help in your QuickBooks Online account to find one in your area.

 

If you have any questions let us know and we'd be happy to help.

N
neojepsi
February 14, 2022

Good Day Nick,

 

I believe this is something critical that QuickBooks development team need to look into

I opened a case number ********** for similar issue and still awaiting on response.

 

I have a client based in Saskatchewan, the sales taxes in the that province is 11% ( 6% and 5% for provincial and Federal respectively).

The tracking on Sales tax on invoices issued to customer is working properly  with the below breakdown:

1. GST Collected and allocated to Liability account GST/HST Payable  5% 

2. PST Collected and allocated to Liability account PST SK Payable 6%.

 

However the tracking of the Above Sales taxes on Bill is not working

For example

A Vendor bill my client for the service 111( Including PST and GST)

if Quickbook show on the invoice the split as follow

Telephone  119.05

GST Paid      5.95

PSt Paid        7.04

       Cash /CC/AP       132.14

But when positing to the actual account, we have the following

Telephone 119.05

GST Paid  5.95

Telephone  7.04 ( instead of PST SK Payable account)

Cash /CC/AP       132.14

This need to be looking as we are not currently offsetting the PST Collected with the One's paid

 

Find attached a pdf showing the situation above

 

 

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