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We're proofreading the contract template for our first customer. Question: XYZ shall pay our company an amount of: a) just $Z, b) $Z + tax?

Mia Scott avatar
Written by Mia Scott
Updated over 5 years ago

Taxes are generally not called out separately in a contract. Pricing specified in the contracts are almost always all-inclusive for all sorts of reasons. The most important of those reasons is simplicity.  Because simplicity is very important to get the contract through customer’s legal department. 

This isn't a legal advice, but some contracts address tax burdens in the reps and warranties section or at least in a specifically called out section.
For example, X assumes all tax burden related to this transaction, or X and Y agree to carve it up in this way.
It is best to just talk to your lawyers regarding about this.

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