Accounting for GST/HST
by Small Business Owner
Accounting for HST/GST When Not An HST/GST Registrant
I have a small company and I don't collect GST. What do I do with the GST/PST on receipts when entering them into QuickBooks?
If you are not an HST / GST Registrant, you have two ways to approach this:First option
- you include the tax as part of the expense. For example, if you purchased office supplies for $75 plus tax, you would:
debit ... Office Supplies $75 plus tax
and credit ... Cash In Bank $75 plus taxSecond option
- you create a separate Sales Taxes Paid
expense account. For example, if you purchased office supplies for $75 plus tax, you would:
debit ... Office Supplies $75
debit ... Sales Taxes Paid $taxes paid
and credit ... Cash In Bank $75 plus tax
For more detailed information on accounting for GST/HST when you are not a registrant, see my chat, If You Are NOT An HST/GST Registrant
. This chat also has links to explain how you are paying too much tax when you are not an HST GST registrant.
I hope this answer helps you out.