Sales Tax Account Setup

[Andrew Greig]

On Thu, 2008-01-31 at 13:10 -0800, UrrrGrrr wrote:
> Hi. I'm trying to set up accounts for collecting sales tax.
> 
> One account goes into Liabilities, Accounts Payable, Sales Tax. Where does
> the second account go?
> 
> Thanks!

Hi,

In Australia we set up two liabilities accounts, one for Tax Collected
(on items sold), and one for Tax Expended (on Items purchased), the
difference is what we pay to the Tax Office. (This is a GST or VAT
system)

Andrew Greig