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, the sales tax needs to be calculated on the amount after the discount unless the discount is due to a manufacturer's coupon or rebate being applied (which is not applicable in MK).
Any non-recovered sales tax appears in the Sales Tax (NR) column of the Weekly Accomplishment. You can also print a report of your non-recovered sales tax for a specified date range, by printing the Non-Recovered Sales Tax Summary report.
For more information about how much sales tax to charge and when we've included links to additional websites with the helpful information below. You have the ability to calculate tax on the full retail amount on an individual invoice, however, we strongly recommend that you contact Mary Kay or your tax professional for more information before charging full retail tax on discounted items. View
US Customers: See page 5 of Mary Kay's Fulfillment Options Reference document (linked below) for additional information.
Additional Information:
- Helpful Sales Tax Information
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TaxJar: How Sales Tax Applies to Discounts, Coupons & Promotions
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QuickBooks Resource Center: Do I need to Collect Sales Tax? If so, How Much?
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The Balance: How Do I Charge GST/HST on Discounts?
Tip: If you live in Canada, your Boulevard software also includes a GST/PST Rebate form to handle remitting for reimbursement. To print any corresponding invoices, see Invoices by Sales Type.