No. The sales taxes collected in retail aren’t included in earnings figures. Hence, sales tax isn’t displayed in an income report. The collected sales tax is listed as a current liability until it is remitted to the government.
As an example, let’s suppose that a retailer’s products face a state sales tax of 8.5%. If the retailer sells $1000 of products for cash, his or her business will collect $1085 in total, with $85 as sales tax revenue. This is marked as 1) a debit to Cash for $1085, 2) a credit to Sales for $1000 and 3) a credit to Sales Taxes Payable for $85. Remember that the Sales account did not show the $85 of sales taxes.
When the business remits the sales taxes to the government, the liability account Sales Taxes Payable is debited.