Surrey Businesses: A GST and PST Sales-and-Purchases Checklist

Start with the transaction evidence

Retain the product or service description, customer or supplier details, destination information and supporting invoice. Tax treatment follows the relevant supply and rules, not just the location of the business bank account. A recurring tax code should have a documented basis.

Separate resale purchases from assets and operating supplies used by the business. A vendor can supply all three. Review exemption documentation where applicable instead of assuming a supplier-wide setting is appropriate.

Illustrative example: ordinary taxable retail goods

Assume a Surrey retailer makes a $2,500 sale of goods taxable at 5% GST and 7% PST, with no exemption or special rule. The invoice contains $125 GST and $175 PST, for a $2,800 total. The two collected amounts are tracked separately from the $2,500 sale.

A $560 customer refund should be connected to its original invoice and tax treatment rather than posted as an unexplained expense. The actual credit documentation determines the adjustment; do not infer the tax split from a refund total when the original sale included different categories.

Review the purchase side separately

Eligible GST input tax credits need the required evidence and business-use analysis. PST paid is not a GST input tax credit. Its accounting treatment, exemption or potential refund follows its own rules. The bank payment confirms cash movement but may not provide all required invoice information.

Prepare an exception list for missing invoices, mixed-use purchases, unusual destinations, credits and purchases with unexpected tax. Give each item a next action and keep uncertain treatment visible until reviewed.

Tie returns and payments back to the ledger

Compare each tax control account with the supporting calculation, filed return and payment or refund. Timing differences should be explained rather than cleared with an unsupported journal. Retain submission evidence separately from the bank transaction.

The monthly process should also identify dated rule changes affecting the business. A new supplier service or sales channel may require a fresh review even when the ordinary goods transactions have stayed the same. Consistent evidence makes that review faster and helps the owner understand why two invoices may legitimately carry different taxes.

Put this into practice

• GST and PST bookkeeping →
• Retail businesses →
• Tax worksheet →