- In the US, customers are used to paying the price of an item plus the sales tax rate
- Some vendors choose to include sales tax in the posted price for convenience
- Pros of tax included pricing include simplicity for customers, especially in cash transactions
- Cons include some states not allowing tax included pricing and the need to break out sales tax on each transaction for filing
- Tax included pricing can be tricky for retailers with varied product mixes and customers in different states with varying tax rates
Source: taxjar.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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