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Publication 113, Coupons, Discounts and Rebates - California A sale is made for $100 plus $8.25 sales tax. Upon prompt payment for the item, the purchaser is allowed a discount of two percent of the sales price of $100. Since you are deducting the amount of the discount, $2, from taxable gross receipts, you are charging tax of $8.09 (8.25 percent of $98) to your customer.
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Coupons Are Taxable - Why Do We Have To Pay Sales Tax on ... If the retailer, reduces the price, the tax is also reduced (e.g. $2 discount so now we have an $8 sale x 10% tax = $0.80 sales tax). However, with coupons from outside parties (not coupons the ...
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