USA Budget Line Item for Sales Tax

Joined
Mar 5, 2022
Messages
8
Reaction score
0
Country
United States
We are an organization that completes a yearly budget. We have a special event that has a line item for our special event sales tax that we project to pay on gross proceeds from sales. Should there be an expense line item - Sales tax on the budget? It is an estimated expense amount. How should this be explained if it is appropriate to have this as a separate line item. We do have our state's special event sales tax license for multiple events. We do have a line item in our projected income for the year for the projected sales from this event.

For me I feel it is an expense that will be realized and we should have it as a line item.

Thank you,
rasrjs
 

BIG E

VIP Member
Joined
Dec 19, 2020
Messages
317
Reaction score
43
Country
United States
Sales tax is neither income or an expense.
It is a collection of funds due to a tax imposed on the sale of something.
It is then remitted to the State - it's an exchange not effecting the financial statements.
If anything - it should appear in the current liability section of the balance sheet.

In some states perhaps there is a vendor credit that is available if complying with filing
and paying on time. THAT is income to be allocated for if you can project the amount
of taxable sales you'll be responsible for turning over to the State tax department.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

Budget 2
BUDGETING AND FORECASTING COURSE 0
UK Cash Budget 4
USA Bylaws: Does This Require A Balanced Budget? 4
USA Budgeting Question 1
Ireland Cash Budget (HELP!) 0
USA Budget Followup & Feedback 1
South Africa Budgeting & forecasting books or online Training 0

Members online

No members online now.

Forum statistics

Threads
11,790
Messages
27,864
Members
21,814
Latest member
RickyglicE

Latest Threads

Top