Per the articles linked here and linked here (and in the IRIS Total Revenue Definition) in the US, sales taxes are accounted for on the balance sheet and not the profit and loss statement where Annual Revenues are determined. Given this, for congruity across regions it is recommended that sales taxes and value added taxes are not included in a company’s Account Annual Revenue.
Note: in most cases the sales tax and VAT will not be listed on a company’s profit and loss statement so no further action is needed
However, as an example, if a company’s profit and loss statement lists a revenue of $55M and this is broken into Net Sales of $50M from products and $5M of sales tax/VAT, the Revenue Last year in our assessment should be just the $50M.
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