Taxes5 min · Updated Jul 2026
VAT and sales tax without the jargon
Money you collect for the tax office is not yours to spend — even when it sits in your account.
If you collect VAT or sales tax, that portion of each sale belongs to the tax authority.
Transfer it out of operating cash on a schedule. Waiting until the return is due recreates the same surprise every cycle.
Match your pricing and till setup so the tax portion is visible, not buried in a round number you mentally treat as profit.
When rates or thresholds change, update the transfer percentage the same week.
Again: this is plain-language orientation. Confirm details with your adviser for your location and status.
