Book your sales taxes on Bkper so, you know at any moment your balance on taxes receivable or payable.

Tax on purchase (when you buy)

  • The purchase itself 
  • Reserving the Sales Tax

 see example

Tax on sales (when you sell)

  • The sale itself 
  • Reserving the Sales tax

 see example 

The examples use simplified cash basis for easy understanding. You can also set more complex tax flows involving accounts payable and receivable instead of the direct Bank.

Periodic Sales tax closing 

Sales taxes are (mostly) closed with a payment of the difference between the Sales Tax Due and the Sales Tax Reclaimed.

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.

Automate Sales Tax transactions with our Sales Tax Bot.

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