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.
For more information about how much sales tax to charge, we've included links to additional websites with the helpful information below. We also recommend that you check with your local taxing authority to ensure your business is handling each tax situation correctly.
Note: You can charge tax on the full retail amount of individual invoices by clicking
to the right of the Tax field. However, we strongly recommend that you contact the company or your tax professional for more information before charging full retail tax on discounted items.
Additional Information:
- 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.
- Mary Kay Industry: See page 5 of the Fulfillment Options Reference document for additional information.
- Close Year-End & Run Tax Reports