Sales tax calculator mobile app11/13/2022 ![]() ![]() Please note that the total amount due from the customer consists only of the tax calculated and collected by the clothing store on this transaction. The clothing store must calculate and collect sales tax on the full selling price of $20 before deducting the $20 value of the promotional deal. The customer comes into the clothing store to purchase the specified article of clothing which has a selling price of $20. The promotional deal is redeemable for a specific article of clothing. When the promotional deal is purchased, the radio station issues a certificate to the customer. The restaurant must calculate and collect sales tax on the full selling price of $70 before deducting the $50 value of the promotional deal as indicated on the certificate.Įxample 2: A clothing store in a city with a 1% local sales tax contracts with a radio station to sell $20 promotional deals for $10. The customer orders meals with a total selling price of $70. ![]() The promotional deal is redeemable on the purchase of meals. When a promotional deal is purchased, a certificate is issued to the customer. The amount of the promotional deal is then applied to the transaction.Įxample 1: A restaurant in a city with a 1.5% local sales tax contracts with an online advertiser to sell $50 promotional deals for $25. When the promotional deal is redeemed by the customer, sales tax is first calculated on the full selling price of the taxable sale. The payment made by the purchaser to the advertiser for the promotional “deal” is sales tax exempt. Purchases of these promotional deals from advertisers, such as online businesses, local radio stations, and newspapers, are treated in the same manner as purchases of gift certificates. Retail promotional deals, sometimes referred to as “deals-of-the-day,” can include offers on everything from vacation packages to restaurant meals. If you are a seller via the Internet, click here for more information.
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