- Sales tax is levied on sold goods and services at the state, county, and/or local levels.
- Certain goods and services are exempt from sales tax, while other surprising elements of the sales process may be taxable.
- Sales tax for discounted items can be complex and depends on the type of discount.
- Cash discounts can be a percentage reduction or a fixed amount deducted from the total, and sales tax is usually applied to the post-discount price.
- Sales tax on coupons depends on whether they are manufacturer coupons or store/retailer coupons.
- Gift cards are not taxed at the time of sale, but purchases made with gift cards are taxed.
- Sales tax for buy-one-get-one-free offers varies depending on the method used to calculate the discount.
- Manufacturer rebates are not considered discounts and cannot be used to lower the purchase price before taxation.
- Sales tax calculations on discounted items can be challenging due to inconsistency across jurisdictions.
- Retailers have responsibilities to correctly calculate and collect sales tax, and consumers rely on them to remit the collected taxes to government authorities.
Source: quaderno.io
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
