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Contract Price to include or not include Sales Tax amount

  • 1.  Contract Price to include or not include Sales Tax amount

    Posted 20 days ago
    ​​Hello,

    Looking to see how to handle this situation. Some of our clients want Sales Tax Included in quotes and some do not.

    My questions are :

    If the contract amount is EXCLUDING Sales Tax, do we add the Sales Tax amount into the Contract Price on the Job.

    If the Contract Amount is Including Taxes, do you add the Contract Price as is (with Taxes) or Enter the Amount less the Sales Tax amount?

    Ex.       Contract is $10,000 and Sales Taxes are $1,000 do we enter the Contract Amount as $11,000 or as $10,000
                Contract agreement signed includes sales tax. Contract Amount is $11,000. Do we enter this Contract Amount as $11,000 or $10,000

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    Brenda Hartmann
    Bookkeeper
    Integrated Process Solutions
    Fosston MN
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