Biz Write-Offs LogoBiz Write-Offs

Sales tax paid on business purchases

Varies

Can You Write Off Sales Tax Paid on Business Purchases?

Short answer: Yes: sales tax is part of the cost of what you bought, so it's deducted or depreciated with the item.

Sales tax you collect from customers isn't income or an expense.

Records to keep: Keep receipts or invoices, proof of payment, and a short note of the business purpose.