[GNC] Sales Taxes...

[Les]

I am not an account so..  However, if you are purchasing items for 
resale in Texas, you can obtain a resale certificate from the local 
county, which allows you to purchase these items without paying sales 
taxes.  You do not state the type of organization you are using for your 
business, but it you have formalized it, the certificate is available.

So time ago, I owned vending machines and filed a "d.b.a." in the county 
I lived in at the time and obtained my supplies without paying sales 
taxes. I then included the "retail sales taxes"in my records.

I do not know if this is still available.

Les

On 12/26/20 6:49 PM, Eric H. Bowen via gnucash-user wrote:
> Okay. With year-end coming up I'm not looking to make major changes in
> the past, but I'd like to account for everything properly in the future.
>
> Say I purchase $100 in printing supplies (paper, ink, etc.) from a local
> vendor. The IRS wants me to account for taxes in the value of items
> purchased. So I add an entry for $108.25 (8.25% local tax), and the full
> value goes into my "Expenses:Business Expenses:Office Supplies" account.
> Fine.
>
> Now, suppose I purchase that $100 in supplies from an out-of-state
> vendor who falls under the threshold for reporting sales taxes to Texas
> (rhyming couplet there?) and so does not charge me sales tax on the
> purchase. The law says that I have to pay a sales/use tax on the
> purchase anyhow. Fine, I have a liability account set up for "Sales
> Taxes Payable" which I normally use for the sales I make to customers;
> once a quarter I total this up and send a check in to the comptroller.
> No problem at all to do so with my online purchase, but the $8.25 which
> I pay at the end of the quarter doesn't get added to my Office Supplies
> purchase, as it should.
>
> Finally, suppose I purchase the supplies from a local vendor, who
> charges tax, but who grants me a "Net 30" for payment and so it goes
> into my Accounts Payable as a bill. If I use the "Sales Tax Payable"
> account/tax table for the purchase, my payment for the purchase goes in
> as a payment on the liability, which is wrong. I can use a separate
> sales tax table tied to a different account for purchases, in which case
> it will be recorded as "Expenses:Business Expenses:Business Taxes:Sales
> Tax Paid", but ideally the $8.25 should have been added to the value of
> the purchase in "Office Supplies."
>
> Is there a quick and elegant solution to this issue which I'm
> overlooking, but that I could implement for next year?
>