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TBParts
November 11, 2021
Question

Setting up Suppliers tax information to claim back sales taxes paid to them

  • November 11, 2021
  • 1 reply
  • 0 views

Newbie here, I purchase parts from various suppliers, when I do I pay sales tax on what I purchase for items bought within Canada. I mostly purchase and pay for the items using my credit card and I do get receipts which I can see the taxes paid. What is the best way to input the invoice from my supplier into Quickbooks so I can reconcile it with the credit card purchase? As well I understand that the taxes I paid I get back, where is that captured? I am slowly getting the basics however its a struggle so any help is appreciated.

1 reply

A
Alex M
November 11, 2021

Hi there TBParts,

 

It's vital that all your expenses be entered correctly so that your accounts balance well. QuickBooks Online is a great tool able to help you keep track of amounts of taxes on transactions to be able to help you remit your taxes to the government at the end of the period. I can provide some information about entering this transaction.

 

One thing to make sure to set up before creating this transaction would be to make sure you've set up sales tax. I've linked a tutorial on how to set up sales tax on your QuickBooks Online account in order to be able to apply it to your transactions.

 

Once the taxes are set up, you can add the transaction as either a Bill and Payment or an Expense. You can find both of these transactions by clicking on the +New option, then Expense or Bill. Enter the information of the transaction, then don't forget to add the respective tax code. Here is some information as to how to Enter bills and record bill payments in QuickBooks Online as well as Enter and manage expenses in QuickBooks Online.

 

If you have any other questions, feel free to reach out here.

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