Is sales tax assumed to be included in event sales
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.
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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. -
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
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