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finance-spacecen
May 3, 2021
Question

We pay PST (7%) and GST (5%) on purchases, but only 50% of the GST is an ITC, the rest of the GST and the all PST go towards the cost of the purchase. How to set this up?

  • May 3, 2021
  • 1 reply
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1 reply

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LauraAB
May 3, 2021

Hello finance-spacecen,

 

Thanks for describing what you're looking for with sales tax codes in QuickBooks Online. I know there are some sales tax codes that are nuanced and need to calculate in certain ways, and I can direct you to the steps to setting up sales tax codes in the program.

 

QuickBooks Online has a number of default provincial and territorial sales tax codes that are configured to calculate based on government regulations. When you have specific needs with sales tax codes, you can set up custom codes so that they calculate properly for your remittances. I recommend consulting an accountant to make sure you get it just right, but from what you've described, it sounds to me like you'll want to set up a custom GST code to account for the ITC portion and then perhaps create a group sales tax code with the PST is you're intending to use them together.

 

The article How to set up a new sales tax code walks you through how to set up default, custom, and group sales tax codes. With the steps in this article, you should be good to go. Since sales tax codes cannot be deleted, feel free to try creating and using the kind of code you need in the QuickBooks Online test drive account to make sure it'll work the way you need it to.

 

To get the advise of an accountant, you can use the My Accountant tab in QuickBooks Online. That tab gives you the opportunity to invite your accountant as a user to your books or you can use the Find a pro to help button to research QuickBooks-certified accountants near you.

 

Feel free to take a look at the article and test drive account, or ask more questions if you have them! Take care.

F
finance-spacecenAuthor
May 3, 2021

Most generic response ever! Of course I looked at how to set up new sales tax codes. I have set up like 20 new ones trying to get the right one. Unfortunately you were no help. 

 

Also, I am the accountant. 

L
LauraAB
May 3, 2021

Thanks for those additional details, including that you're the accountant. In this case, since you've already tried setting up sales tax codes and still haven't found quite the right one for your needs, it may be beneficial to talk with any accountant colleagues you have. Other users here in the community forum may have ideas for you as well.

 

From a QuickBooks Team perspective, I can advise you on things like using the sales tax centre to create a custom sales tax code as I mentioned. It may even mean setting up a couple of custom codes and combining them so that you get the result you're looking for. Something like the concept for setting up a meals and entertainment sales tax code could potentially help, however to make sure it's right for your books, it's good to have professional advice. 

 

Wishing you the best.

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