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It depends on exactly what you mean, but generally, sales tax is figured on net sales. For instance, if you buy an item for $100, but you trade an item for it that is worth $25, you only pay sales tax on the difference of $75, not the entire $100.
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∙ 11y ago
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What do you use to figure sales tax your gross sales or net sales?
Net Sales..
Is tax amount deducted from gross sales to arrive at net sales?
No. tax is deducted from gross sales neither is it deducted from gross profit.
Is vat tax included in the gross sales?
Yes. Gross sales = Net Sales + VAT
Net sales minus cost of goods sold?
Net sales - CoGS = Gross Profit Gross Profit - other expenses = Net profit before tax Net profit before tax - tax amount = Net profit after tax
Is income tax variable cost?
No, income tax is calculated after all other fixed and variable costs are considered and deducted from gross sales. That number is your Net Profit, and income tax is calculated based on that number (not on the number of units one produces).
What is Net Selling Price?
The gross sales priceis the price that the customer pays, including sales tax. Thenet sales priceis the price without sales tax.
How do you calculate sales tax using gross sales?
If I understand your question correctly you know what the Gross Receipts are and need to calculate the sales tax that is included. If that is the case this is how to do it. Gross Receipts - Gross Receipts divided by (1+ Tax Rate) if your tax rate is 5% and your gross receipts including tax are $1,050.00, divide $1,050.00 by 1.05. The result is your net receipts without tax. $1000.00 . Then $1050.00 -$1000.00 = $50.00 the sales tax
How do you Gross up sales tax?
Sales Tax / Sales Tax Rate = Gross Sale
How do you calculate gross sales?
NET SALES: Gross sales minus returns, discounts, and allowances. GROSS SALES: Total invoice value of sales, before deducting for customer discounts, allowances, or return.No. The sales tax is posted as a credit to the Sales Tax Payable Account. So, if you had a $100 sale plus $5 sales tax, you would debit cash $105, credit Sales $100 and credit Sales Tax Payable $5...
Net profit after tax?
Yes, net is after tax. Gross is before tax.
What is gross sales tax?
gross sales tax is the tax you pay on total receipts/sales. basically you can't deduct any expenses before you pay the tax.
Can you show me how to calculate sales in dollars to earn after tax net income of 24000?
You just have to do all the calculations backwards. 24,000 divided by ( 1 - tax rate) = Net income before taxes. Net Income before Taxes + Fixed Expenses + Operating Expenses = Gross Profit Gross profit divided by (1 - variable expense rate) = Total Sales
