Texas Discounts, Credits & Tubulars
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How to fill out Discounts, Credits & Tubulars?
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FAQ
An exemption certificate must show: (1) the name and address of the purchaser; (2) a description of the item to be purchased; (3) the reason the purchase is exempt from tax; (4) the signature of the purchaser and the date; and. (5) the name and address of the seller.
A nontaxable discount is applied after sales tax. A taxable discount is applied before sales tax. Both taxes are prorated among the items they apply to.
You can also convert the discounted percentage to a decimal and multiply that by the original price. To calculate a tax, you can convert the percentage to a decimal, then multiply it by the price. If you want to know the total cost, including the tax, you can multiply the original price by one plus the decimal.
From an initial amount, it is possible to add taxes first, then remove the discount from this new amount. This is possible because of the associative and commutative property of multiplication. However, the discount is usually calculated first. In the following example, the GST and the QST will be rounded to 15 %.
Because discounts are generally offered directly by the retailer and reduce the amount of the sales price and the cash received by the retailer, the sales tax applies to the price after the discount is applied.