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    4. When you calculate sales tax, do you deduct the cost of goods sold?
    When you calculate sales tax, do you deduct the cost of goods sold?

    For example; I am installing an AC, the AC cost $2,500.00, the labor for it will be approximately $450.00 so the total invoice amt. will be $2,950.00. I have not marked up the cost of the AC. Do have I to pay Sales Tax on the whole invoice amount?

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    0  Views: 350 Answers: 1 Posted: 14 years ago
    Tags: accountingtheoryhelp
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      1 Answer

      Depends on your State. Some charge tax only on products that are sold (A/C) others also charge tax on services.
      Did you buy the A/C for $2,500 and sell it for the same price?
      If you have already paid tax on the A/C then it is not necessary to pay it again.
      14 years ago. Rating: 0
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