CALCULATING GROSS RECEIPTS
Backing out the tax - An explanation of the calculation labeled "Back out tax" is in order.
N.M. state law makes the seller responsible for gross receipts tax (GRT) regardless of whether the tax is added to sales invoices, bills or other sales documents. That means the money you receive from sales consists of 2 amounts: the sale and the GRT. To avoid paying tax on the GRT, you should report only the sales amounts. You do this by using an arithmetic formula. After backing out the tax from total gross receipts, you get taxable gross receipts.
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