Is it necessary for me to separate sales tax when I am paying an invoice? Will there ever come a need for me to show that I have been paying sales tax on my invoices?

Thanks!

It depends on whether your business is registered with sales tax authorities.

If registered, you must keep a record for sales tax paid on purchases so that you can adjust the collection against collections made from sales made.

If not registered, then no need to keep a separate record for sales tax since the sales tax paid is part of the cost of your purchases

Quote:

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Originally Posted by rehmanvohra

If registered, you must keep a record for sales tax paid on purchases so that you can adjust the collection against collections made from sales made.

If not registered, then no need to keep a separate record for sales tax since the sales tax paid is part of the cost of your purchases

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This once again depends on where you live.

Therefore, SalesTaxNerd, it would be good to know where you live. (No, I don't mean your exact city or anything.)