Handling Sales Tax on Discounted Items
When products are purchased from the company, your business is charged tax on the full retail value of each product. If discounts are given, sales tax needs to be calculated on the amount after the discount is applied unless the discount is due to a manufacturer's coupon or rebate being applied (which is not applicable in MK).
You can print a report of your non-recovered sales tax for a specified date range by printing the Non-Recovered Sales Tax report.
You can calculate tax on the full retail amount on an individual invoice by clicking
to the right of the Tax field. However, we strongly recommend contacting the company, your tax professional, or your local taxing authority for more information to ensure your business handles each tax situation correctly before charging full retail tax on discounted items.
For additional information, view the Sales Tax FAQs 
(US) or Sales Tax Information 
(CA) on the InTouch website.
Additional Information:
We've included links to additional websites with helpful information below about how much sales tax to charge and when.
- TaxJar: How Sales Tax Applies to Discounts, Coupons & Promotions
- QuickBooks Resource Center: Do I need to Collect Sales Tax? If so, How Much?
- The Balance: How Do I Charge GST/HST on Discounts?
- For additional information, see Helpful Sales Tax Information.
- Close Year-End & Run Tax Reports