The sales tax financial statement is created for the purpose of companies recording their business activities which essentially deal with revenue generated from the sales of products and services. The required amount of tax that is to be given as a result is calculated based on the sales made and the profit income generated. It is important to clearly state the total revenue and expenses of the given time period.
There is a requirement for the income statement or financial statement to be as transparent as possible. For non-profit organizations, the receipts, donations and other financial support need to be mentioned. This is so that proper taxes can be levied on the income or revenue that is generated. Sales revenue is part of the income that is received by companies for producing the proper sales tax statement. Different methods of calculations can be applied but most importantly, this statement should be accurate.
Sample Sales Tax Financial Statement
The following is a sales tax financial statement for USFT Fridge Corp Ltd.
Accountant: Y. U Men
Income Generated from September 2011 to April 2012:
- Production cost for all products sold over the time period mentioned has been within $10 million
- The cost of marketing and sales has been about $ 3.4 million (a more accurate report has been provided in the company’s financial statement)
- The cost of creating back-up strategies in case of losses over the period stated has been $2.5 million
- The total sales generated: $14.5 million
- Revenue: (-) $2.3 million
Sales Tax filed:
Due to the heavy losses, the sales tax of 14.5% on the entire sales generated has been deferred for another sales period within which the company is expected to bring back the revenue and submit the accumulated sales tax pending from the previous sales period.