How do you record the sales tax on the purchase of an asset?

All the expenses made in order to obtain the assets is considered the cost of asset..So in case if one's country is not allowing sales tax exemption then Sales Tax is part of the cost of the asset that has been purchased.

Some friends gets confused in using GST and Sales Tax, GSTax is basically a consumer tax collected by government to meet their own expenses or for community benefits. 

The sales tax on the asset which on the other hand will be purchase tax for the buyer of the asset will be added to the cost of the asset. According to IAS16

Measurement Recognition -  An item of property, plant, and equipment that satisfies the recognition criteria should be recognized initially at its cost

comprises:

• Purchase price, including import duties, nonrefundable purchase taxes, less trade discounts and rebates.
• Costs directly attributable to bringing the asset to the location and condition necessary for it to be used in a manner intended by the entity.
• Initial estimates of dismantling, removing, and site restoration if the entity has an obligation that it incurs on acquisition of the asset or as a result of using the asset other than to produce inventories.

We will not record sales tax on purchase rather it will be added to the cost of asset and gross amount will be inclusive of sales tax paid.

However, in some countries like Pakistan you may claim input/output tax credit in that case you just need to keep record for tax paid provided that, that you are in process of manufacturing or resale otherwise such tax shall be added to the cost of the assets.