# How do I record the sales tax I collect from customers so it isn't counted as my revenue?
- **[New York State, United States · persons required to collect New York sales and compensating use tax under Article 28]** The tax is paid to the person required to collect it as trustee for and on account of the state. → [CG-MCE-042#S01](#s-CG-MCE-042-S01)
- **[New York State, United States · persons required to collect New York sales and compensating use tax under Article 28]** Where the customer is given a sales slip, invoice, receipt or other statement or memorandum of the price, amusement charge or rent paid or payable, the tax must be stated, charged and shown separately on the first such document given to the customer. → [CG-MCE-042#S05](#s-CG-MCE-042-S05)
- **[Zoho Books · US-EN help edition · United States · organizations using Zoho Books]** A created tax rate in Zoho Books can be associated with a customer, a vendor or an item, and is then automatically applied to transactions created for that customer or vendor. → [CG-MCE-042#S11](#s-CG-MCE-042-S11)
## What this page establishes
- What the state says you are doing when you add tax to a customer's price — Not established
- How money collected for a taxing authority is classified and presented in the books — Not established
- Stating the tax separately on the document the customer keeps — Partly established
- How a small-business accounting system applies tax to a sale — Not established
- Reversing an amount previously recorded as collected — Not established
- The tax on the bill was never your money — Established
- The account that holds the collected amount until you remit it — Not established
- Making the split happen at the moment you enter the sale — Established
- A sale already posted as one gross amount: separating the tax out — Not established (Required authority: authoritative professional or accounting standard, official platform documentation. Highest achieved: official platform documentation.)
- Confirming it sits on the balance sheet and not on the profit and loss — Not established
- Sales you charged no tax on, kept separate from taxable sales — Not established (Required authority: official platform documentation, primary regulator or government. Highest achieved: official platform documentation.)
- Refunds, credit memos and discounts against tax already recorded — Not established
- What the customer's invoice or receipt has to show — Partly established
- When the obligation is recorded on accrual books and on cash books — Not established
## The tax on the bill was never your money
- The tax is paid to the person required to collect it as trustee for and on account of the state. _(jurisdiction: New York State, United States, entity_scope: persons required to collect New York sales and compensating use tax under Article 28)_ `CG-MCE-042#S01`
> “The tax shall be paid to
the person required to collect it as trustee for and on account of the
state.” — [New York State Legislature (NY Tax Law, Chapter 60, Article 28, Part 4), published by the New York State Senate — New York Tax Law section 1132, Collection of tax from customer; proof required for registration of motor vehicles](https://www.nysenate.gov/legislation/laws/TAX/1132), 2025-03-07; SECTION 1132 — § 1132(a)(1), third sentence. Verified 2026-09-09.
- Every person required to collect the tax must collect it from the customer at the time of collecting the price, amusement charge or rent to which it applies, except as otherwise permitted in § 1133(d). _(jurisdiction: New York State, United States, entity_scope: every person required to collect the tax under Tax Law Article 28, conditions: except as otherwise permitted in subdivision (d) of section 1133 of this part)_ `CG-MCE-042#S02`
> “Except as otherwise permitted in
subdivision (d) of section eleven hundred thirty-three of this part,
every person required to collect the tax shall collect the tax from the
customer when collecting the price, amusement charge or rent to which it
applies.” — [New York State Legislature (NY Tax Law, Chapter 60, Article 28, Part 4), published by the New York State Senate — New York Tax Law section 1132, Collection of tax from customer; proof required for registration of motor vehicles](https://www.nysenate.gov/legislation/laws/TAX/1132), 2025-03-07; SECTION 1132, Tax (TAX) CHAPTER 60, ARTICLE 28, PART 4 — § 1132(a)(1), first sentence. Verified 2026-09-09.
- In California, whether a retailer may add sales tax reimbursement to the sales price of tangible personal property sold at retail to a purchaser depends solely upon the terms of the agreement of sale — the amount added is reimbursement of the retailer's sales tax, arising from the sale agreement rather than automatically. _(jurisdiction: United States — California, entity_scope: retailers selling tangible personal property at retail to a purchaser)_ `CG-MCE-042#S03`
> “Whether a retailer may add sales tax reimbursement to the sales price of the tangible personal property sold at retail to a purchaser depends solely upon the terms of the agreement of sale.” — [California Department of Tax and Fee Administration (CDTFA) — California Code of Regulations, title 18, Regulation 1700, Reimbursement for Sales Tax](https://www.cdtfa.ca.gov/lawguides/vol1/sutr/1700.html), 2010-05-13; Regulation 1700, subdivision (a)(1) Addition of Sales Tax Reimbursement. Verified 2026-09-09.
## What the state says you are doing when you add tax to a customer's price
- See above: The tax is paid to the person required to collect it as trustee for and on account of the state. ([CG-MCE-042#S01](#s-CG-MCE-042-S01))
- See above: Every person required to collect the tax must collect it from the customer at the time of collecting the price, amusement charge or rent to which it applies, except as otherwise permitted in § 1133(d). ([CG-MCE-042#S02](#s-CG-MCE-042-S02))
- See above: In California, whether a retailer may add sales tax reimbursement to the sales price of tangible personal property sold at retail to a purchaser depends solely upon the terms of the agreement of sale — the amount added is reimbursement of the retailer's sales tax, arising from the sale agreement rather than automatically. ([CG-MCE-042#S03](#s-CG-MCE-042-S03))
_Not established from an authoritative source._
## The account that holds the collected amount until you remit it
_Not established from an authoritative source._
## How money collected for a taxing authority is classified and presented in the books
_Not established from an authoritative source._
## Making the split happen at the moment you enter the sale
- A created tax rate in Zoho Books can be associated with a customer, a vendor or an item, and is then automatically applied to transactions created for that customer or vendor. _(jurisdiction: United States, entity_scope: organizations using Zoho Books, platform: Zoho Books, platform_edition: US-EN help edition, conditions: the tax rate has been created)_ `CG-MCE-042#S11`
> “Now, once you create the tax rate, you can associate it with a customer, vendor, or item in your organization, and it will be automatically applied to transactions you create for that customer or vendor.” — [Zoho Corporation (Zoho Books US help) — Taxes | Help | Zoho Books](https://www.zoho.com/us/books/help/settings/taxes.html), no last-updated date shown on the page; snapshot retrieved 2026-09-09 (confirmed 2026-09-08); Taxes > Tax Rates > Create a New Tax Rate — closing note. Verified 2026-09-09.
- Zoho Books allows tax rates or tax groups to be created and assigned to customers and vendors in the organization. _(jurisdiction: United States, entity_scope: organizations using Zoho Books, platform: Zoho Books, platform_edition: US-EN help edition, conditions: Available Plans listed for this section: Standard, Professional, Premium, Elite, Ultimate)_ `CG-MCE-042#S13`
> “You can create tax rates or tax groups and assign them to customers and vendors in your organization.” — [Zoho Corporation (Zoho Books US help) — Taxes | Help | Zoho Books](https://www.zoho.com/us/books/help/settings/taxes.html), no last-updated date shown on the page; snapshot retrieved 2026-09-09 (confirmed 2026-09-08); Taxes > Tax Rates (Available Plans: Standard, Professional, Premium, Elite, Ultimate). Verified 2026-09-09.
- Once a tax rate is assigned to a customer or vendor in Zoho Books, that rate applies automatically to a transaction when the customer or vendor is selected on it. _(jurisdiction: United States, entity_scope: organizations using Zoho Books, platform: Zoho Books, platform_edition: US-EN help edition, conditions: a tax rate has been assigned to the customer or vendor)_ `CG-MCE-042#S14`
> “Once assigned, the tax rate you set for the customer or vendor will automatically apply to the transaction when you select them.” — [Zoho Corporation (Zoho Books US help) — Taxes | Help | Zoho Books](https://www.zoho.com/us/books/help/settings/taxes.html), no last-updated date shown on the page; snapshot retrieved 2026-09-09 (confirmed 2026-09-08); Taxes > Tax Rates. Verified 2026-09-09.
- Zoho Books allows a tax group to be created by combining two or more tax rates, so that the group can be associated with customers or vendors eligible for multiple taxes. _(jurisdiction: United States, entity_scope: organizations using Zoho Books, platform: Zoho Books, platform_edition: US-EN help edition, conditions: Available Plans listed for this section: Standard, Professional, Premium, Elite, Ultimate)_ `CG-MCE-042#S15`
> “You can create a tax group in Zoho Books by combining two or more tax rates. This allows you to associate the group with customers or vendors eligible for multiple taxes.” — [Zoho Corporation (Zoho Books US help) — Taxes | Help | Zoho Books](https://www.zoho.com/us/books/help/settings/taxes.html), no last-updated date shown on the page; snapshot retrieved 2026-09-09 (confirmed 2026-09-08); Taxes > Create a New Tax Group (Available Plans: Standard, Professional, Premium, Elite, Ultimate). Verified 2026-09-09.
## How a small-business accounting system applies tax to a sale
- Zoho Books (US edition) offers tax authorities, sales and use tax setup, tax exemptions, tax overrides and tax groups, described by the vendor as covering federal, state and local tax rules. _(jurisdiction: United States, entity_scope: organizations using Zoho Books, platform: Zoho Books, platform_edition: US-EN help edition)_ `CG-MCE-042#S09`
> “Zoho Books makes it easy to manage taxes and stay compliant with the U.S. tax regulations. You can add tax authorities, set up sales and use taxes, manage tax exemptions and overrides, and create tax groups to handle federal, state, and local tax rules.” — [Zoho Corporation (Zoho Books US help) — Taxes | Help | Zoho Books](https://www.zoho.com/us/books/help/settings/taxes.html), no last-updated date shown on the page; snapshot retrieved 2026-09-09 (confirmed 2026-09-08); Taxes — opening paragraph (Settings > Taxes help page). Verified 2026-09-09.
- In Zoho Books, sales tax that was not enabled during organization setup can be enabled afterwards from Settings. _(jurisdiction: United States, entity_scope: organizations using Zoho Books, platform: Zoho Books, platform_edition: US-EN help edition, conditions: sales tax was not enabled during organization setup)_ `CG-MCE-042#S10`
> “If you didn’t enable Sales Tax for your organization while setting it up, you can enable it from Settings.” — [Zoho Corporation (Zoho Books US help) — Taxes | Help | Zoho Books](https://www.zoho.com/us/books/help/settings/taxes.html), no last-updated date shown on the page; snapshot retrieved 2026-09-09 (confirmed 2026-09-08); Taxes > Enable Sales Tax. Verified 2026-09-09.
- See above: A created tax rate in Zoho Books can be associated with a customer, a vendor or an item, and is then automatically applied to transactions created for that customer or vendor. ([CG-MCE-042#S11](#s-CG-MCE-042-S11))
- Enabling the tax override option in Zoho Books allows the total tax amount on sales or purchase transactions to be edited, overriding the system-generated tax amount, which the page relates to county- and state-level rate variation. _(jurisdiction: United States, entity_scope: organizations using Zoho Books, platform: Zoho Books, platform_edition: US-EN help edition, conditions: the tax override option is enabled)_ `CG-MCE-042#S12`
> “You can adjust the total tax amount in sales or purchase transactions in Zoho Books by enabling the tax override option. This feature allows you to edit and override the system-generated tax amount based on the specific county and state, as tax rates may vary.” — [Zoho Corporation (Zoho Books US help) — Taxes | Help | Zoho Books](https://www.zoho.com/us/books/help/settings/taxes.html), no last-updated date shown on the page; snapshot retrieved 2026-09-09 (confirmed 2026-09-08); Taxes > Tax Settings > Tax Override in Transactions. Verified 2026-09-09.
_Not established from an authoritative source._
## A sale already posted as one gross amount: separating the tax out
- See above: Enabling the tax override option in Zoho Books allows the total tax amount on sales or purchase transactions to be edited, overriding the system-generated tax amount, which the page relates to county- and state-level rate variation. ([CG-MCE-042#S12](#s-CG-MCE-042-S12))
- When a tax rate already applied to existing transactions is edited in Zoho Books, the user is asked to confirm whether the new rate should also be updated in those existing transactions. _(jurisdiction: United States, entity_scope: organizations using Zoho Books, platform: Zoho Books, platform_edition: US-EN help edition, conditions: the edited tax rate has already been applied to existing transactions)_ `CG-MCE-042#S20`
> “Note: If the tax you’re editing has already been applied to existing transactions, you will be asked to confirm whether you want to update the new tax rate in those transactions as well.” — [Zoho Corporation (Zoho Books US help) — Taxes | Help | Zoho Books](https://www.zoho.com/us/books/help/settings/taxes.html), no last-updated date shown on the page; snapshot retrieved 2026-09-09 (confirmed 2026-09-08); Taxes > Other Actions in Tax Rates > Edit a Tax Rate — Note. Verified 2026-09-09.
- The Tax Settings page in Zoho Books is where use tax is enabled and tax overrides for transactions are set up. _(jurisdiction: United States, entity_scope: organizations using Zoho Books, platform: Zoho Books, platform_edition: US-EN help edition)_ `CG-MCE-042#S21`
> “This page lets you enable use tax and set up tax overrides for transactions.” — [Zoho Corporation (Zoho Books US help) — Taxes | Help | Zoho Books](https://www.zoho.com/us/books/help/settings/taxes.html), no last-updated date shown on the page; snapshot retrieved 2026-09-09 (confirmed 2026-09-08); Taxes > Tax Settings. Verified 2026-09-09.
- Zoho Books provides separate settings, Enable Tax Override for sales transactions and Enable Tax Override for purchase transactions, selected according to the module to be adjusted. _(jurisdiction: United States, entity_scope: organizations using Zoho Books, platform: Zoho Books, platform_edition: US-EN help edition)_ `CG-MCE-042#S22`
> “Choose Enable Tax Override for sales transactions or Enable Tax Override for purchase transactions depending on which module you want to adjust.” — [Zoho Corporation (Zoho Books US help) — Taxes | Help | Zoho Books](https://www.zoho.com/us/books/help/settings/taxes.html), no last-updated date shown on the page; snapshot retrieved 2026-09-09 (confirmed 2026-09-08); Taxes > Tax Settings > Tax Override in Transactions — step 4. Verified 2026-09-09.
_Not established from an authoritative source._
_Required authority: authoritative professional or accounting standard, official platform documentation. Highest achieved: official platform documentation._
## Confirming it sits on the balance sheet and not on the profit and loss
_Not established from an authoritative source._
## Sales you charged no tax on, kept separate from taxable sales
- The page states that tax exemptions apply where customers are not required to pay sales tax because of the nature of the item or their status — examples given include resale, nonprofit organizations and specific goods — and that such exemptions usually vary by state, with some counties or cities possibly having their own rules. _(jurisdiction: United States, entity_scope: customers of organizations using Zoho Books, platform: Zoho Books, platform_edition: US-EN help edition, conditions: examples given as an open list ('such as'); variation by state stated as usual, not universal)_ `CG-MCE-042#S16`
> “Tax exemptions apply when customers are not required to pay sales tax due to the nature of the item or their status, such as for resale, nonprofit organizations, or specific goods. These exemptions usually vary by state, and some counties or cities may have their own rules.” — [Zoho Corporation (Zoho Books US help) — Taxes | Help | Zoho Books](https://www.zoho.com/us/books/help/settings/taxes.html), no last-updated date shown on the page; snapshot retrieved 2026-09-09 (confirmed 2026-09-08); Taxes > Tax Exemptions (Available Plans: Standard, Professional, Premium, Elite, Ultimate). Verified 2026-09-09.
- Creating a tax exemption in Zoho Books involves entering an Exemption Reason recording the reason for the exemption. _(jurisdiction: United States, entity_scope: organizations using Zoho Books, platform: Zoho Books, platform_edition: US-EN help edition)_ `CG-MCE-042#S17`
> “In the New Tax Exemption pop-up, fill in the following fields: Exemption Reason: Enter the reason for the tax exemption.” — [Zoho Corporation (Zoho Books US help) — Taxes | Help | Zoho Books](https://www.zoho.com/us/books/help/settings/taxes.html), no last-updated date shown on the page; snapshot retrieved 2026-09-09 (confirmed 2026-09-08); Taxes > Tax Exemptions — New Tax Exemption pop-up fields. Verified 2026-09-09.
- A Zoho Books tax exemption carries a Type field set to indicate whether the exemption applies to a Customer or to an Item. _(jurisdiction: United States, entity_scope: organizations using Zoho Books, platform: Zoho Books, platform_edition: US-EN help edition)_ `CG-MCE-042#S18`
> “Type: Choose whether the exemption applies to a Customer or an Item.” — [Zoho Corporation (Zoho Books US help) — Taxes | Help | Zoho Books](https://www.zoho.com/us/books/help/settings/taxes.html), no last-updated date shown on the page; snapshot retrieved 2026-09-09 (confirmed 2026-09-08); Taxes > Tax Exemptions — New Tax Exemption pop-up fields. Verified 2026-09-09.
- A created tax exemption in Zoho Books can be associated with a customer or applied to transactions for items. _(jurisdiction: United States, entity_scope: organizations using Zoho Books, platform: Zoho Books, platform_edition: US-EN help edition, conditions: the tax exemption has been created)_ `CG-MCE-042#S19`
> “Now that you’ve created the tax exemption, you can associate it with a customer or apply it to transactions for items.” — [Zoho Corporation (Zoho Books US help) — Taxes | Help | Zoho Books](https://www.zoho.com/us/books/help/settings/taxes.html), no last-updated date shown on the page; snapshot retrieved 2026-09-09 (confirmed 2026-09-08); Taxes > Tax Exemptions — closing note. Verified 2026-09-09.
_Not established from an authoritative source._
_Required authority: official platform documentation, primary regulator or government. Highest achieved: official platform documentation._
## Refunds, credit memos and discounts against tax already recorded
_Not established from an authoritative source._
## Reversing an amount previously recorded as collected
_Not established from an authoritative source._
## What the customer's invoice or receipt has to show
- Where the customer is given a sales slip, invoice, receipt or other statement or memorandum of the price, amusement charge or rent paid or payable, the tax must be stated, charged and shown separately on the first such document given to the customer. _(jurisdiction: New York State, United States, entity_scope: persons required to collect New York sales and compensating use tax under Article 28, conditions: applies only if the customer is given a sales slip, invoice, receipt or other statement or memorandum of the price, amusement charge or rent)_ `CG-MCE-042#S05`
> “If the customer is given any sales slip, invoice, receipt or
other statement or memorandum of the price, amusement charge or rent
paid or payable, the tax shall be stated, charged and shown separately
on the first of such documents given to him.” — [New York State Legislature (NY Tax Law, Chapter 60, Article 28, Part 4), published by the New York State Senate — New York Tax Law section 1132, Collection of tax from customer; proof required for registration of motor vehicles](https://www.nysenate.gov/legislation/laws/TAX/1132), 2025-03-07; SECTION 1132 — § 1132(a)(1), second sentence. Verified 2026-09-09.
- One listed circumstance raising the presumption that the parties agreed to the addition of sales tax reimbursement is that sales tax reimbursement is shown on the sales check or other proof of sale given in the transaction. _(jurisdiction: United States — California, entity_scope: retail sales of tangible personal property to a purchaser, conditions: operates as a presumption under subdivision (a)(2), not as a stated obligation to show it)_ `CG-MCE-042#S06`
> “(B) Sales tax reimbursement is shown on the sales check or other proof of sale; or” — [California Department of Tax and Fee Administration (CDTFA) — California Code of Regulations, title 18, Regulation 1700, Reimbursement for Sales Tax](https://www.cdtfa.ca.gov/lawguides/vol1/sutr/1700.html), 2010-05-13; Regulation 1700, subdivision (a)(2)(B). Verified 2026-09-09.
- One listed circumstance raising the presumption that the parties agreed to the addition of sales tax reimbursement is that the retailer posts on the premises in a location visible to purchasers, or includes on a price tag or in an advertisement or other printed material directed to purchasers, a notice to the effect that reimbursement for sales tax will be added to the sales price of all items or certain items, whichever is applicable. _(jurisdiction: United States — California, entity_scope: retailers making retail sales of tangible personal property, conditions: operates as a presumption under subdivision (a)(2))_ `CG-MCE-042#S07`
> “(C) The retailer posts in his or her premises in a location visible to purchasers, or includes on a price tag or in an advertisement or other printed material directed to purchasers, a notice to the effect that reimbursement for sales tax will be added to the sales price of all items or certain items, whichever is applicable.” — [California Department of Tax and Fee Administration (CDTFA) — California Code of Regulations, title 18, Regulation 1700, Reimbursement for Sales Tax](https://www.cdtfa.ca.gov/lawguides/vol1/sutr/1700.html), 2010-05-13; Regulation 1700, subdivision (a)(2)(C). Verified 2026-09-09.
- Where the retailer posts on the premises, or includes on a price tag or in an advertisement, one of the notices then set out, it shall be presumed that property whose gross receipts are subject to sales tax is sold at a price which includes tax reimbursement. _(jurisdiction: United States — California, entity_scope: retailers selling property the gross receipts from which are subject to California sales tax, conditions: presumption applies only where one of the two notices quoted in the regulation is used)_ `CG-MCE-042#S08`
> “It shall be presumed that the property, the gross receipts from the sale of which is subject to the sales tax, is sold at a price which includes tax reimbursement if the retailer posts in his or her premises, or includes on a price tag or in an advertisement (whichever is applicable) one of the following notices:” — [California Department of Tax and Fee Administration (CDTFA) — California Code of Regulations, title 18, Regulation 1700, Reimbursement for Sales Tax](https://www.cdtfa.ca.gov/lawguides/vol1/sutr/1700.html), 2010-05-13; Regulation 1700, subdivision (a)(2) Presumptions — tax-included notices. Verified 2026-09-09.
_Partly established. Established: what the customer-facing invoice or receipt must show (S05). Missing: what follows when the invoice or receipt does not show it._
## Stating the tax separately on the document the customer keeps
- See above: Where the customer is given a sales slip, invoice, receipt or other statement or memorandum of the price, amusement charge or rent paid or payable, the tax must be stated, charged and shown separately on the first such document given to the customer. ([CG-MCE-042#S05](#s-CG-MCE-042-S05))
- See above: One listed circumstance raising the presumption that the parties agreed to the addition of sales tax reimbursement is that sales tax reimbursement is shown on the sales check or other proof of sale given in the transaction. ([CG-MCE-042#S06](#s-CG-MCE-042-S06))
- See above: One listed circumstance raising the presumption that the parties agreed to the addition of sales tax reimbursement is that the retailer posts on the premises in a location visible to purchasers, or includes on a price tag or in an advertisement or other printed material directed to purchasers, a notice to the effect that reimbursement for sales tax will be added to the sales price of all items or certain items, whichever is applicable. ([CG-MCE-042#S07](#s-CG-MCE-042-S07))
- See above: Where the retailer posts on the premises, or includes on a price tag or in an advertisement, one of the notices then set out, it shall be presumed that property whose gross receipts are subject to sales tax is sold at a price which includes tax reimbursement. ([CG-MCE-042#S08](#s-CG-MCE-042-S08))
_Partly established. Established: whether tax must be stated separately on the document given to the customer (S05). Missing: what records a seller must keep showing the split between the sale and the tax; what follows for the seller where the document given to the customer does not state the tax separately._
## When the obligation is recorded on accrual books and on cash books
_Not established from an authoritative source._
## Not yet fully established from an authoritative source
- Establish the character of sales tax collected from a customer — whose money it is, on whose behalf it is held, and why it is not the seller's receipts — under US state sales-tax regimes. _(not established)_
- Establish the accounting treatment and classification of amounts collected for a taxing authority and held pending remittance, and how the balance is presented; establish also which event creates the recorded obligation on accrual-basis books and on cash-basis books, and the treatment that separates the collected amount out of a sale already recorded as a single gross amount. _(not established)_
- Establish whether tax must be stated separately on the document given to the customer, and what records a seller must keep showing the split between the sale and the tax, and what follows for the seller where the document given to the customer does not state it separately. _(partly established)_
- Establish how mainstream small-business accounting systems implement the tax split — taxability flags on items and customers, tax codes, and the account the collected amount posts to; establish also how a sale carrying no tax is flagged so that taxable and non-taxable sales stay distinguishable in the ledger, and what mechanism such a system offers to separate the tax out of a transaction already posted gross without reissuing the document the customer holds. _(not established)_
- Establish the treatment of a refund, credit memo or discount that reduces or reverses an amount previously recorded as collected from a customer. _(not established)_
- Determine the account and account type that hold the collected amount until remittance, and how that balance is expected to behave over a period. _(not established)_
- Determine how to separate the tax from a sale that has already been posted as a single gross amount, and how to do it without altering the customer-facing record of the transaction. _(not established; below the required authority class)_
- Establish how the collected amount must appear on the balance sheet and must not appear on the profit and loss, and give the reader a way to verify that in their own reports. _(not established)_
- Determine how a sale carrying no tax is recorded so that taxable and non-taxable sales stay separable in the ledger, without deciding whether any particular sale should have been taxed. _(not established; below the required authority class)_
- Establish the effect of a refund, credit memo or discount on an amount previously recorded as collected, and how the reversal reaches the same account. _(not established)_
- Identify what the customer-facing invoice or receipt must show for the recorded split to be supportable, and what follows when it does not show it. _(partly established)_
- Explain how the timing of the obligation differs between accrual-basis and cash-basis books, and which event creates the recorded amount in each case. _(not established)_
## Related
- [How do I set up my products and services list so that sales post to the right income accounts?](https://uppago.com/resources/how-do-i-set-up-my-products-and-services-list-so-that-sales-post-to-the-right)
- [How do I check that my sales tax payable account matches what I actually owe and filed, and clear it when I pay?](https://uppago.com/resources/how-do-i-check-that-my-sales-tax-payable-account-matches-what-i-actually-owe-and)
- [What do I need on file from customers I didn't charge sales tax to, and how long do I have to keep it?](https://uppago.com/resources/what-do-i-need-on-file-from-customers-i-didn-t-charge-sales-tax-to-and-how-long)
_Reference date 2026-09-07. Statements are quoted verbatim from their sources; scope and verification dates are shown on each._