Learn how to charge GST or VAT on a vendor expense and how the tax appears in the posting journal. The Expenses feature routes tax to either the owner's or the vendor's accounts payable ledger, based on your tax regulation requirements.
Add GST or VST to a vendor expense
Step by step:
- Sign in to your Guesty account.
- In the side navigation menu, click
Financials to open the dropdown menu. - Under "Expenses" choose one of the following:
- Select Expenses report, then click Add expense to create a one-time expense.
- Select Recurring expenses. Click Add recurring expense to create a new rule, or click
and select Edit expense rule on the relevant line to edit an existing rule.
- Enter the expense details.
- For more information see Creating a one-time expense or owner charge, and Creating a recurring expense or owner charge.
- Under the "Payment breakdown" section, select the relevant payment scenario such as vendor gets paid by property owner, by PMC, or by both.
- Click Add VAT/GST on expense and enter the tax details.
- Click Next or Continue.
- Select the relevant listings.
- Click Create or Save.
How vendor expense taxes are routed
Depending on your backend configuration in Guesty, taxes route and reflect in the posting journal in one of the following ways:
- Tax to owner
The base amount is posted to the vendor, while the tax amount is posted to the owner's GST/VAT entity.
- Tax to vendor
The full invoice amount, including both the base amount and the GST/VAT, is posted to the vendor.
This routing ensures accurate reporting based on your tax regulation requirements. Contact your Customer Success Manager or Guesty Support to change your tax routing setup.
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