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Super Explorer ***

Is sales tax included as income at the end of the year?

This question is regarding money received through the year with sales tax included in some of those amounts. Profit & Loss does not include sales tax in the total income amount but should it be added since when you receive 1099's I'm assuming they do include the total amount they gave you (including sales tax amount).

3 Comments
QuickBooks Team

Re: Is sales tax included as income at the end of the year?

Hi there, Vitan.

 

The sales tax amount isn't included as an income but rather a tax liability. It won't show up in your Profit and Loss report but will be posted in the Balance Sheet.

 

For more information how the sales tax works in QuickBooks Online, please see this article: Sales Tax in QuickBooks Online.

 

If you require any further information, feel free to reach out to us. Thanks.

 

Super Explorer ***

Re: Is sales tax included as income at the end of the year?

Thank you for your quick reply! My question is should it be? I know it's not included in the income in P & L. But should I manually add it to the income when prepping for taxes? 

Established Community Backer ***

Re: Is sales tax included as income at the end of the year?


@Vitan wrote:

Thank you for your quick reply! My question is should it be? I know it's not included in the income in P & L. But should I manually add it to the income when prepping for taxes? 


No