Understanding taxes and the income statement

[Maf. King]

On Monday, 22 May 2017 01:11:31 BST P M wrote:
> Thank you.  I think I am doing what you have done.  My problem is
> understanding why the 1.31 adds to Net Income instead of takes away from it
> when you create an income statement.  It seems like sales tax would take
> away from net income, no?  Is that what yours does?
> 
> 

Hi Pete,

Your net income is £18.69.  If you've got the sales tax account set up 
properly and are using a tax table as outlined in the docs, you shouldn't see 
1.31 on an income report - because it is neither income nor expense, it is a 
liability.

Maf.