Sales Tax on Packages

Sales Tax on Packages

  • When a package is sold, the included products are displayed in Point of Sale at a single combined price but are actually being sold individually in the background.
  • Sales tax status is determined by each included product’s status (if the product is taxable or non-taxable on its own).

  • When a package price is LESS than the combined retail price of the included parts (meaning, you are selling these items for less than if you sold them individually) each item is discounted equally to reach that new package price.

  • This new adjusted price is what sales tax is based on for each included item.

  • When a package price is MORE than the combined retail price of the included parts, the opposite happens. Each item’s individual price is increased equally to reach the new combined price point and tax rate is bases on that new adjusted price.

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