Comment Re:Simple Solution (Score 2) 98
I'm going to to be terribly pedantic here, but GST, like all VATs, does not work like that. It is not an expense (as in it does not effect profit and loss). Like all VATs, GST collected on sales is subtracted from GST spent on purchases, and if the remainder is positive, then you pay that to the government, and if it is negative the government sends you the difference. The point is to make a fairer sales tax, where goods and services are not taxed at multiple points. All these financial operations happen on the balance sheet as changes to assets and liabilities, and have nothing to do with expenses at all.