If you purchase items for resale that you do end up paying sales tax on, break out the tax into an expense account such as "Purchase/Use Tax",  then when you prepare your sales tax to be paid you run a report for that expense account and take it as a credit on your Sales Tax return.  You can save the report as a pdf file and attach it as proof when you file the sales tax.  That is how we do it in NY at least. ... View more