It depends on the venue.. If I am at a event and selling shirts at $15.00 then the tax is included. Keeps it simple and quick and doesn't require coin change.. but if I have a customer who orders on line and in my state they pay the sales tax. The majority of my business however is retailers reselling my product so they don't pay tax.
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i think the shirt price plus tax is the norm.
since it depends where the buyer is located.
as for local sales. Tax included may be harder to sort out when tax time comes along.
Tax included formula for 7% tax for exmaple is:
$ 15 x 7 = X
X devided by 107 = 7% tax amount
then you take the $ 15
and subtract the 7% tax amount to get the Net Sale Amount before tax.
since it depends where the buyer is located.
as for local sales. Tax included may be harder to sort out when tax time comes along.
Tax included formula for 7% tax for exmaple is:
$ 15 x 7 = X
X devided by 107 = 7% tax amount
then you take the $ 15
and subtract the 7% tax amount to get the Net Sale Amount before tax.
At trade shows we often did tax-in. For a $20 item we would include the tax. In reality we were charging $18.86 for an item and with our taxes on top (6%) it came to $19.99.starprince said:I was wondering how you charge the tax on your t-shirts.
Is your shirts $15+tax or do you say $15 tax included? I guess this question is more for vendors selling face to face. The $15 price tag is only an example.
Our customers definitely enjoyed tax-in. Even though they were still paying tax it appeared that they were getting a discount compared to other neighboring merchants who would charge the tax on top of the selling price. Actually, it became a selling point for many of our older customers. Younger people didn't seem to care as much.
If you are going to do tax-in, keep good records. You have to still prove to the government that you are charging tax to your customers. Either you pay it or your customer pays it, somebody has to pay it.
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