B.C. For expenses I was told to manually change each of my totals to exclude the pst...then from there only claim gst. Is there an easier way to go about this?

Seems like a ridiculous process to go in and manually change every total of every expense to exclude the pst? I was told that it was necessary as you can’t claim pst on expenses...only gst. It doesn’t make a lot of sense to me as there is the “gst/pst” button on QuickBooks and you’d think QuickBooks would just do the math for you. Could anyone explain this further to me, I’m from AB and not use to dealing with pst. 


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I'm afraid you've been ill advised on this matter.

1.  No, you can't exclude PST from your transaction as it becomes part of the expense you can claim against income.  Well, you can exclude it if you want, but then your expense are understated and your Net Profit will be too high, triggering business tax consequences.

2.  If you've set up your tax items correctly, you can enter the full transaction by entering the pre-tax amount to your expense account and choosing both GST and PST buttons, which will automatically calculate in Quickbooks.

3. If PST on purchases has been set up to track in a separate expense account, you will find the amount of PST for your transaction in that account, for example, an account called 'PST Expense'.

4.  If PST on purchases has NOT been set up to track in a separate expense account, then it will automatically track to the expense account in your transaction.

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Rochelley , Accountant
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