Is sales tax assumed to be included in event sales

Follow

josue.medellin

• December 02, 2016 16:46

When we model sales in a retail sector say pharmacy or other retail, and these sales ($1 million) include the collected sales tax, should these be deducted prior to run the impact? In other words if the sales tax is 7% should we enter $930 million only or $1 million? I would for now assume that the default margins for retail are OK.

0

• 

  IMPLAN Support

  • December 02, 2016 21:03

  Hi Josue! Thank you for your post. You will not need to deduct Sales Tax prior to running the impact. This is as Sales Tax is part of an industry's payment to Taxes on Production and Imports (TOPI), which is captured in the Tax Impact Report page in results. I hope this answers your question.

  0

  Permalink
• 

  josue.medellin

  • December 02, 2016 23:35

  Thanks very much for the prompt response this is great. What if the tax rate is different than the default for a particular product included in TOPI?. For example, if there is an additional excise tax? Thanks in advance, Josue

  0

  Permalink
• 

  IMPLAN Support

  • December 05, 2016 16:01

  Hello Josue, While the ratio of TOPI to Output is industry- and place-specific, the split of TOPI into its different categories (sales, property, severance, etc.) is only place-specific. Therefore, a retail industry's payments to TOPI will be split the same way that a manufacturing industry's payments to TOPI are split. Below is an article that discusses IMPLAN's Tax Impact Report. Generation and Interpretation of IMPLAN's Tax Impact Report http://support.implan.com/index.php?option=com_content&view=article&id=419:419&catid=237:237 Regards, IMPLAN Staff

  0

  Permalink

Please sign in to leave a comment.