Sales tax is $ 2.75
Further Explanation
How to calculate
Tax = $ 25.00 x (11/100)
Tax = $ 25.00 x 0.11
Tax = $ 2.75
Initial purchase of $ 22.25 + 11% Tax ($ 2.75) = $ 25.00
Or other alternatives:
11% tax
n = sales tax value
11% = $ 25.00 / n
n = $ 25.00 x 11%
n = ($ 25.00 x 11) / 100
n = $ 275/100
n = $ 2.75
So, the sales tax is $ 2.75
Sales tax (VAT) is tax before Value Added Tax (VAT) and is charged each time a sales transaction. A VAT is charged at the manufacturer level / not to retailers (end users). A VAT is collected when delivering goods or services.
Definition of Tax Debt
Debt is an engagement as a result of a special agreement called a debt payable, which requires the debtor to pay the amount of money he has borrowed from creditors.
Sales tax / value-added debt or Sales tax payable is the company's debt to the tax office for sales tax collected by the company from customers for the sale of goods/services. Sales tax rates are deposited by the tax office multiplied by sales / net sales (net sales).
Example
$ 12 cash sale including 10% VAT
Tax Amount: 10 / ÷ 100 × 12 = $ 1.2
Sales Amount: 12 - 1.2 = $ 10.8
Learn More
VAT https://brainly.com/question/2374116
Sales Tax https://brainly.com/question/2374116
Details
Class: High School
Subject: Mathematics
Keywords: VAT, Tax, Sales
