How Sales Tax Applies to Discounts, Coupons & Promotions

With few exceptions, sales tax applies to the gross sales of your products or taxable services. The specific regulations vary by state, but the sale price (or gross sales) will exclude any “discounts, including cash, term, or coupons that are not reimbursed by a third party that are allowed by a seller and taken by a purchaser on a sale.”  (To take Georgia’s definition, for example.)In layman’s terms, that means if the original price of something you sell was $100, but you offer a 50% discount, then the taxable price is $50.

Source: taxjar.com

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