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RCV
QuickBooks Team
QuickBooks Team

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Hi there, abr_ora.

 

In QuickBooks Online (QBO), you can set up the Provincial Sales Tax as a Custom tax. Then, choose the This tax is collected on purchases option to include the sales tax when creating a bill.

 

Just follow the steps below on how to add a custom tax:

 

  1. Click Taxes in the left menu.
  2. Click the Add tax button.
  3. Choose Custom tax.
  4. Fill out all the fields needed in the Add tax panel.
  5. Place a checkmark for This tax is collected on purchases option.
  6. Enter the rate in the Purchase rate field.
  7. Place a checkmark for Purchase tax is reclaimable option if it is reclaimable.
  8. Click Save.

Once done, create a bill and enter the amount against the service. Then, choose the Provincial Sales Tax rate you've set up in the Tax column.

 

For Federal Sales Tax that will be paid only in the tax agency, I'd suggest consulting your accountant on how to properly record it in QBO.

 

I have articles here about Sales GST/VAT:

 

Please reply to this post by adding some details below if you need anything else with Sales Tax. I'm here to help.

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