Sales tax
Tax you collect from customers on behalf of a state and pass on. It is never your revenue; it sits as a liability until remitted.
In Solo Superstars
US sales tax is collect-and-remit, not VAT: the app adds it to invoices for customers in your nexus states, books it to Sales Tax Payable, and clears it when you remit. There is no input-tax credit on purchases.
Example
$1,000 sale to a CA customer at 8%: customer pays 1,080; 80 goes to 2200 Sales Tax Payable, not to revenue.
Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.
Also called
- state sales tax
Related
- 2200 Sales Tax Payable — Sales tax you have collected from customers and not yet remitted to the state. Never your revenue; a liability until paid.
- Sales tax nexus — A state where you have enough presence or sales that you must collect its sales tax. Set your nexus states and rates apply automatically.
- Tax rate — The percentage applied to taxable lines for a given state. New workspaces start with a state-level rate for every US state.
- Sales tax remittance — Paying collected sales tax to the state. Clears the liability and records the payment in one step.
- Sales tax collected — The total tax you have added to invoices and customers have paid in a period, by state. What you owe the state.