Accounting for Sole Proprietors: Tax & Bookkeeping Tips
in Business, Accounting & Taxes ·
Lisa Hernandez5;48932182 said:hey, if anyone happens to know...
Does the sales tax from a piece of equipment you bought—you know, something that goes on the balance sheet as a fixed asset—need to be included in the VAT section under expenses when looking at your income and outflows? Basically, should the tax in the expense report match what's in the actual tax filing?
Anyway, just wanted to drop the answer here in case someone else is stuck on this too. I gave the IRS a quick ring, and they confirmed that yeah, you definitely need to include the input tax you claimed on that equipment purchase within your expense reporting.