Sales tax is taken on:
A)Trade discounts
B)Cash discounts
C)Shipping charges
D)Selling price minus trade discount
E)None of these

Question

Quizplus · Accepted Answer

Sales tax is calculated on the selling price after trade discounts have been subtracted. Trade discounts reduce the selling price, and the reduced amount becomes the new base for calculating sales tax. Cash discounts, which are reductions for early payment, and shipping charges are not typically considered in the base amount for sales tax calculation.

Sales Tax Is Taken On