Which GST category (eg. GST (5%) or Out of Scope (0%) do I use for a personal expense paid for with a business chequing account?

Thanks for reaching out the Community, pmwehrle.

In your case, I recommend consulting an accounting professional for further guidance on how to record personal expenses paid by the business chequing account. This way, you'll be able to categorize the client's personal expense transactions depending on its territory.

You can also refer to this link for more information about common sales tax codes.

I'm also linking some of our great resources below:

• Everything You Need to Know About Business Sales Tax
• The Small Business Owners Guide to Provincial Sales Tax (PST, GST, HST)
• How to pay for personal expenses from a business credit card or bank account
• About mixing business and personal funds

Let me know if you have any follow-up questions. I'll be here to keep helping. Have a good one.

If these are truly personal expenses, you enter no GST at all.  You only enter the net amount of the transaction against the Drawings account, as you have already suggested.  If you are forced to enter a tax code, you would create an 'Exempt' tax code, if QBO doesn't have a native Exempt code set up - sorry, can't remember if it does or not.  If not, you can set one up under 'Manage Sales Tax'.