When I categorize an expense I need to determine if I paid HST(tax on it or not), however, I don't have that option (tax on it or not). Please advise how I can do this.

Hi info-annexwebser,

Having the sales tax applied to expenses is essential in keeping with government guidelines.  QuickBooks Online is a versatile program that allows you to manage your sales tax and ensure the rates are set up properly.  I'd be happy to provide more information.

In addition to the advice provided, I also recommend ensuring you've selected 'I pay this on purchases' when setting up the sales tax rate.

Here's how:

1. Open Taxes from the left menu and then Sales Tax

2. Go to Manage Sales Tax

3. Select +Add custom rate next to the agency

4. Enter a Name

5. Check the box next to:  I collect this on sales and/or I pay this on purchases

6. Complete the required fields and hit Add when done

You can also set the sales tax as the default for products and services by following these steps:

1. From the Gear in the top right, select Products and Services

2. Locate the item in the list and choose Edit in the Action column

3. Checkmark the box beside Inclusive of sales tax

4. Click on the drop down arrow to select the appropriate Sales Tax

5. In the Purchasing Information section, enter the Expense account

6. Check the box for Inclusive of purchase tax

7. Use the dropdown arrow to select the applicable Sales Tax

8. Hit Save and Close when done

The sales tax will automatically be applied when creating transactions, so you won't have to do it manually.

For your reference here's a couple of helpful articles:

Add sales tax to products and services

Sales tax set up

If you have any other questions, please don't hesitate to reach back out.  We're here for you!