Level 15

Taxes

That would work for sales tax reporting but the issue is going to be whether or not the item that you paid sales tax on, is part of a larger sale which has sales tax applied to.  Say you buy with sales tax a wall sconce, and include it with other items being sold too - be really hard to pull that info out for that one item.

I would make life easy on myself, and just include the sales tax paid as part of the cost, and adjust my margin with that in mind.