Proper Way to Enter Taxable Purchases

[Jean-David Beyer]

On 04/03/2014 10:52 AM, Fast Radio wrote:
> Buy the book, it gives precise details about taxes.

What book?
> 
> On Thursday, April 3, 2014 6:11 AM, Jean-David Beyer
> <jeandavid8 at verizon.net> wrote:
> On 04/03/2014 06:48 AM, Maf. King wrote:
>> On Wed 2 April 14 14:07:52 Donna Pfeifer wrote:
> 
>> If your sales tax works the same way as our VAT, then you would need
> an asset
>> account called something like "Sales Tax Paid on Purchases" and split the
>> purchase transaction between Expenses:Widgets and SalesTaxPaid.
>>
> 
> I live in New Jersey and there is a sales tax on most things I buy (7%)
> and that tax is collected at the time of purchase. But in addition,
> there is an end-use tax charged on things I purchase from out of state.
> This is very confusing for several reasons:
> 
> 1.) It is impossible to get an authoritative statement of which items
> are taxable and which are not.
> 
> 2.) Some out of state businesses collect New Jersey sales tax, and some
> do not. Amazon.com collects the tax on some things and not on others.
> 
> 3.) If you buy something out of state and pay their sales tax, the end
> use tax in New Jersey is just the amount that New Jersey Tax exceeds the
> tax you paid out of state.
> 
[snip]


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