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February 4, 2025
Question

Setting up provincial and federal fuel tax on sales and purchases

  • February 4, 2025
  • 1 reply
  • 0 views

In Quickbooks Enterprise, I am attempting to create items for all the fuel taxes charged in each province, which are a rate per litre (not a %).  To complicate things, there is GST applied to those taxes.

 

I tried creating each tax as a Sales Tax Item but GST can't be charged on those.

I tried adding this to a Sales Tax Group along with GST so that it would then charge GST on the tax, but that doesn't allow a dollar rate item for the items in the group, only a %rate.

I tried creating each tax as an Item/Other item (not Sales tax item), but that can't be attached to a liability account (only rev/exp) which is obviously what it needs to be in order to report and submit taxes to the govt.

I see I can make it an inventory item, but that overly complicates the books with extra unnecessary accounts etc. and still doesn't allow for a liability, only rev/cost/asset.

 

I feel I am missing something basic.  Can anyone advise me on how to accomplish setting up fuel taxes per litre in the system properly?

 

Thanks.

1 reply

February 4, 2025

Hi LKef,

 

Welcome to the Community. I'll be glad to share more info so you're on the right track with recording your transactions. 

 

Entering your transactions the right way is essential for ensuring your books remain accurate. I recommend consulting an accounting specialist for expert advice. This ensures your entries are recorded in a way that allows for you to navigate the program with peace of mind. You can get in touch with an accounting professional using this link here. Other accounting professionals are able to see this post in the Community and are also able to chime in. 

 

Let me know if this info helps. I'll be here.