Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Sales tax
- This topic has 3 replies, 2 voices, and was last updated 8 years ago by John Moffat.
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- March 20, 2016 at 4:56 pm #307157
Question:
“Which of following statements about sales tax is/ are true?
1. Sales tax charged on purchases is an expense to a busisness if the business is not sales tax registered.
2. Sales tax is charged by all business when they sell products.”Please show me the reason why the statement 2 is incorrect.
I am confused about second statement, because I know will all business, the double entry when they sell the goods is:
DR AR/ CR output Sales tax + CR SalesMarch 20, 2016 at 8:06 pm #307173Sales tax is only charged by businesses that are registered for sales tax.
If they are not registered (because their revenue is low) then they do not charge sales tax.
March 21, 2016 at 12:31 pm #307238Thank you for your supporting, I have passed the F3 exam with 88% 2 hours ago :*
March 21, 2016 at 4:48 pm #307250That is great news. Many congratulations (especially on getting such a high mark) 🙂
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