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Level 1

Sales Taxes in P&L

I paid Sales Taxes last January and they are reflected in my checking account, but they do not show up in my P&L. Current sales taxes do show in my balance sheet as current liabilities. Where would the paid taxes be, and how do I get them into my P&L?

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Best answer February 12, 2020

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Community Champion

Sales Taxes in P&L

Sales tax is a liability and as such transactions using that liability account don't appear on your P&L because it is neither income or an expense.

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Community Champion

Sales Taxes in P&L

Sales tax is a liability and as such transactions using that liability account don't appear on your P&L because it is neither income or an expense.

View solution in original post

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Level 1

Sales Taxes in P&L

Thank you, obviously I am not a CPA. I was looking at sales tax as a cost of doing business but I can see it as a current liability as well.

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Level 1

Sales Taxes in P&L

Sales Tax is a liability until paid. Then it goes through the P&L.

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