Booking Meals & Entertainment Expenses


Hi There,

I am using QB and was wondering how I should book the meals and entertainment expenses given that they only have a 50% eligibility.

Do I just simply cut the expense and related GST in half and book that portion? I ask because I've seen accountants wanting these expenses booked at 100% in the past but I don't understand how you can keep your GST filings straight if you book 100%.

Thanks for any advice.

image of fancy scroll lines

Hello There Yourself!

CRA allows two ways to make the 50% limitation on meals and entertainment expenses adjustment. I mention this in Part 1 of Home Business Taxes ... along with a reference.

Your options are annually ... which some accountants may prefer ... or during each reporting period.

If the annual adjustment method is selected, I explain where to make the adjustment on your GST form in The Bookkeeping Tips.

If you select to report the adjustment monthly ... and are using QuickBooks ... head on over to the Intuit website. There is a free webinar on Understanding HST in Ontario. The presenter covers how to setup HST to capture the the 50% adjustment meal and entertainment adjustment while you are entering your data.

You can find the webinar at Click on Help with Intuit Products > International> QuickBooks Canada> Media Library (Canada).

I'm not giving you the actual link because they seem to move it around. This way, even if the webcast gets moved around, you'll have some idea of where to find it.

If you have questions once you've viewed the webcast, post back here and I'll help you out.

See also the GST on Meals Adjustment for more discussion on how to handle this issue.

Hope this is the information you were looking for and that it proves helpful. Have a fantastic day! :0)

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Learning QuickBooks.

Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.

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

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

Your Learning Curve!


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

Click on image above to read the chat.

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