Posting Expenses When Not GST Registered

by Peggy
(Alberta, Canada)

How to Record the GST Expense

How to Record the GST Expense

I just started a small business and I will not be registering for GST at this time.


When I'm posting these invoices, do I post the entire amount (including the GST) to the account or just the amount less the GST?

For example, if I paid $10.50 for something and $0.50 was GST, do I post the entire $10.50 to the expense account of just $10.00?



section divider



Hi Peggy,

When a business is not registered with the CRA as a GST/HST registrant, it loses the ability to claim their input tax credits. Therefore, as you are not a GST registrant, you need to expense the entire amount but you have a choice on how to post it.

Option One - Post the entire amount (ie. $10.50 in your example) to the appropriate expense account; or

Option Two - Post the expense excluding the GST (ie. $10.00 in your example) to the appropriate expense account; then post the GST ($0.50 in your example) to an expense account "Sales Tax Paid". This way you track the amount of lost input tax credits you could be recovering if you were a GST/HST registrant.

I wrote a short chat on how to handle GST in QuickBooks if you are not a registrant.

Click here to post comments

Return to GST HST.

Enjoy A Tea Break With
Me Today. Let's Chat!

Use the search feature to quickly find the
information you're looking for.

Like this page? Please let Google
know by clicking the +1 button.






 Keep Your  eDocuments Safe And Secure… $7 USD
Version 2 now out
Bigger and Better



SHORTEN
Your Learning Curve!

Buy Now



Warm up your tea cup and check out these chats ...

Click on image above to read the chat.






Purchasing These Products Through My Links Helps To Support This Site

Click on image above for my review.






Join Me On Facebook

Help support this site by "liking" me! Here's where I post current information.

Listed Under Websites NOT Local Business.
This website is not associated with the business operating in Bonnyville AB.






A Handy Reference

Buy Now