My question is about the invoice they receive. I normally write on the bottom of the receipt, "Tax Included". Is this enough? Or, do I need to back the tax amount out on the receipt as well? I have a spreadsheet at home where I record all the sales and it automatically backs the tax out for me, which I then pay quarterly.
Betty,
You do not have to itemize the sales tax in Texas as long as you
state on the invoice or receipt that all sales taxes are included in
the price. As long as your spreadsheet calculates the tax correctly,
you will have met the requirements. The correct way to back sales
tax out of the gross sales amount is to divide the gross by 1 plus
the tax rate.
Example: You sell a piece for the bottom-line price of $45.00 and
state on the invoice or receipt that sales tax is included. Assuming
that the combined taxes for all jurisdictions at the point of sale is
7.75%, you would divide $45.00 by l.0775, which would result in the
net price being $41.76. To take it to the ultimate step, multiply
$41.76 by the tax rate and you end up with $3.24 sales tax. $41.76 +
3.24 = $45.00.
Del Pearson at Designs of Eagle Creek in Beautiful South Texas where
the rain just came back. In which Beautiful part of Texas do you
live?
Right now