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Done

Tax expense (post to expense/asset account as opposed to show on sales tax report)

Started by Josie Berry in Feature Requests | Done!

In BC Canada, we are moving back to GST / PST.
GST is handled fine in XERO, no problems there (GST collected on sales, minus GST paid on purchases = GST to remit to government). PST is another story, PST collected is remitted to the government, but PST paid on purchases is an expense, so it should be posted to the applicable expense account, or if I am buying an asset, it should be capitalized to the asset account.

I would like to be able to set up a tax called 'GST/PST on purchases' and make it's components 5% GST and 7% PST

If I make a $100 purchase of taxable office supplies and I apply the tax code ' 'GST/PST on purchases' to my invoice line for office supplies the entry should be
DR office supplies expense 100.00
DR Sales tax 5.00 (for GST)
DR Office Supplies expense 7.00 (for PST on office supplies)
CR A/P 112.00


So in order to achieve this I would have had to specify my 'GST/PST on purchases' tax code components to post the 5% GST to sales tax and the 7% PST to the applicable expense for the invoice line (or second choice would be just to specify a specific GL code)
Official Xero Reply
Hello Everyone,
Thank you for your support and feedback from our initial release to a limited group! We’re pleased to announce that we now support PST for all transactions in Xero. Today, we have released this feature to all of Canada. Please login to start using it and refer to our Help centre for instructions.

We’d appreciate any feedback you have, please email us at canadataxhelp@xero.com
 

Sheenam Bajaj (Xero Staff)