HM> > No worries - 486DX4/100            $339 ex tax >
HM>                  $399 inc tax

HM> $339 * 1.21 = $410.19. Do you accept lower margins on tax-inc items?

Hamish (& everyone else out there doing calcs like this),

Sales tax is calculated on the _wholesale_ value not the _retail_ value. 
Hence the 21% is on my buying price - not my selling price.

And to answer your question - yes I do accept lower margins on tax inc 
(or charge higher margins on tax ex if you look at it the other way) 
because of the extra work involved in buying goods ex tax - 
specifically: 

A. If you have it in stock you have to apply to the ATO to get a refund 
of the sales tax you paid; or

B. If you order it sales tax exempt the extra forms are something of a 
pain for a one off sale.

Hence, I normally charge about $10 or $20 more margin when selling ex 
tax rather than inc tax. BTW, this also means that you won't be able to 
work backwards from my ex and inc prices and calculate my margin (as I 
have seen some smartarse dickheads do).  

Hope this (longish) answer explains a little bit about our simple sales 
tax system.

Regards,
Tony

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