This question is about gross sales vs net sales.

Is sales tax calculated on gross sales or net sales?

By Zippia Team - Dec. 7, 2022

Sales tax is, as a rule, calculated on gross sales. This is why even when you get a coupon for something free, you often have to pay a bit anyway - you're still paying tax on the full price.

The gross sales price is the unaltered amount, which means that adding your sales tax would get you to the net sales amount.

Is sales tax calculated on gross sales or net sales?

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