Level 15

Business & farm

from irs publication 334

 

Do not deduct state and local sales taxes imposed on the buyer that you must collect and pay
over to the state or local government. Do not include these taxes in gross receipts or sales.

 

however, if you get a 1099misc for sales which includes sales tax,  then report the 1099 amount to avoid a matching notice from the IRS.  deduct the taxes on the line for returns and allowances.