Sales tax is levied on the sale of taxable goods. Sales tax is paid to the vendor, if the transaction is taxable (private consumption). In essence this tax is identical toNon-Deductible Input Tax. The taxes paid increase the expense, an explicit tax posting is not carried out. See also Example: Posting Sales Tax.
In contrast to non-deductible input tax, sales taxes have multiple levels and tax is calculated on a different basis.
Where sales tax is paid to vendors, it does not need to be reported to the tax authorities. To enable later checks, however, it must be stored in the system along with the transaction to which it relates.