I'm not sure what form you're filing exactly so it's hard to say. Check the instructions for the form carefully to see the instructions addresses your issues.
I don't prepare returns regularly, but I don't believe sales taxes would be included in total sales. And even if they are I would presume that there would be a deduction elsewhere. It wouldn't make sense for you to pay federal taxes on money that you pay as sales tax to the state. It may be a good idea for you to talk to an accountant and have them handle filing taxes. Good luck.
I would need to know which form you are filing to fully answer your question, but my best guess is that total sales would include all sales, even those that are non-taxable. For example, if someone purchases items with an agricultural exemption such that sales tax is not imposed, then the total sales amount would include such sales, while the "taxable sales" number would not. Depending upon your business, the total sales & taxable sales numbers may be exactly the same. I would imagine that you should not include the sales tax in either number. You should contact a local CPA to assist you with such questions.
I assume you are preparing a monthly or quarterly Texas sales tax return. Total sales does not include the amount of sales tax you have collected from customers. Taxable sales is the total sales of taxable items or services, and also does not include the sales tax collected from customers. There is a lot of information on sales tax and procedures on the Texas Comptroller's website.
Ira W DavidIntellectual Property Law AttorneyLas Vegas, NV ·
The difference is non-taxable sales, which might be zero. If you are in a business where your sales include some taxable items and some non-taxable items (think supermarket) it is important to keep them separate as you have to file reports with your city, county or state and send them collected sales tax. Usually this is computed by total taxable sales times sales tax rate. This may not be exactly accurate as sales taxes are charged on individual sales and rounding errors may occur, but it is close enough. You do not, however, send in any sales tax for non-taxable sales.