AliciaP1
Expert Alumni

Self employed

No, sales tax is neither income nor expense to your business.  Since it is a pass-through that you are collecting on behalf of the state government (not the IRS) it is recorded as a liability owed when you collect it and the liability is relieved when you pay it.

 

@maribank 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"