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Level 1

In the Profit/Loss report, under Income, how can it show the sales tax I charged customers?

I collect for svcs rendered + sales tax.When I pay my GE taxes, I print out this report, then also print the Sales Tax Liability Report. Having the sales in the Income Sect. would be better for me.

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Best answer October 15, 2018

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Level 2

In the Profit/Loss report, under Income, how can it show the sales tax I charged customers?

Sales tax collected is neither income nor expense - therefore, will not show on a Profit and Loss Report.

You collect sales tax from your customers and hold it (as a liability) until which time you remit it to the tax agency.

Why would it be 'better for you' to see it on the P & L?

Laura D

View solution in original post

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Highlighted
Level 2

In the Profit/Loss report, under Income, how can it show the sales tax I charged customers?

Sales tax collected is neither income nor expense - therefore, will not show on a Profit and Loss Report.

You collect sales tax from your customers and hold it (as a liability) until which time you remit it to the tax agency.

Why would it be 'better for you' to see it on the P & L?

Laura D

View solution in original post

Highlighted
Level 1

In the Profit/Loss report, under Income, how can it show the sales tax I charged customers?

Thank you for your response.  I thought having it in that report would make it easier not to forget to report it as income when I file my state general excise tax.  I had to make a few amended GE reports.  I forgot to add the tax as income since we collected this from customers.   Appreciate your help.
Highlighted
Level 2

In the Profit/Loss report, under Income, how can it show the sales tax I charged customers?

I am not familiar with your specific report, so I am not clear on your need to "report it as income when I file my state general excise tax".

In my experience, the Income/Sales from customers on a sales tax report is the total amount prior to the tax collected.  Then, the tax is calculated on the form and should, in theory, match the amount that you collected from your customers.  If you are using the sales tax platform in QuickBooks, this should match the sales tax liability report.
Highlighted
Level 1

In the Profit/Loss report, under Income, how can it show the sales tax I charged customers?

In Hawaii, we get taxed on the tax.  Our general excise tax is the amount of sale plus the tax.  Then we pay 4% on that total.  It's like we get double taxed.  Now, back to the question, how do i show that column in my profit and loss report.
Highlighted
Level 1

In the Profit/Loss report, under Income, how can it show the sales tax I charged customers?

In Hawaii, we get taxed on the tax.  Our general excise tax is the amount of sale plus the tax.  Then we pay 4% on that total.  It's like we get double taxed.  Now, back to the question, how do i show that column in my profit and loss report.
Highlighted
Level 1

In the Profit/Loss report, under Income, how can it show the sales tax I charged customers?

In Hawaii, we get taxed on the tax.  Our general excise tax is the amount of sale plus the tax.  Then we pay 4% on that total.  It's like we get double taxed.  Now, back to the question, how do i show that column in my profit and loss report.

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