A simple scheme to represent your sales tax on bkper

On Purchase (when you buy)


The purchase itself 

Paying supplier 

Getting tax back 

see example


The purchase itself
 220 Bank (asset) >> Expense (outgoing)

 Reserving the Sales Tax
 20 Expense (outgoing) >> Sales Tax Reclaimed (asset)

Getting tax back
 20 Sales Tax Reclaimed (asset) >> Bank (asset)
 see example 2

On Sales (when you sell)


The sale itself
 330 Product/Service (incoming) >> Customer (asset)
 30 Sales Tax Due (liability) >> Product/service (incoming)

Receivable payed  
 330  Customer (asset) >> Bank (asset)

Paying tax
 30 Bank (asset) >> Sales Tax Due (liability)
 see example 3


The sale itself
 440 Product/Service (incoming) >> Bank (asset)

Reserving the Sales tax
 40 Sales Tax Due (liability) >> Product/service (incoming)

Paying tax
 40 Bank (asset) >> Sales Tax Due (liability)
 see example 4

Periodic Sales tax closing
 Normally Sales tax are closed with a payment of the difference between the Sales Tax Due minus the Sales Tax Reclaimed and not separate entries for each of these accounts as in the samples above.

Balance value Sales Tax Reclaimed (asset) is 200
 Balance value Sales Tax Due (liability) is 1000

The related transactions
 800 Bank Account (asset) >> Sales Tax Due (liability)
 200 Sales Tax Reclaimed (asset) >> Sales Tax Due (liability)

Note: for simplicity we used 10% sales tax in the sample bookings

Sample book for Sales Tax

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