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How do you calculate sales tax?

How to calculate sales tax. To calculate sales tax of an item, simply multiply the cost of the item by the tax rate.

How do you back out sales tax?

Back Out Tax Amount. Follow these steps to back the sales tax amount out of the total sales for each department. Run the Sales by Department report. To get the pre-tax sales amount, divide each department's net sales by 1 plus that department's tax rate. To get the sales tax amount, subtract the pre-tax sales amount from the department's net sales.


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