Tax Deductions for Sales Reps

Tax Deductions for Sales Reps

Sales representatives deal with selling of goods to the customer. Their main aim is to maintain a smooth flow of sales processes for which they gather as much detail from the customer as possible, analysing the demand-supply mechanism of the consumer.

On an average, sales representatives make an estimated amount of $20-40 hourly, which means $40,000 – $80,000 yearly. Therefore, sales representatives are also held accountable for their annual income before the taxation department.

The sales representatives also have a few situations where they can claim for a tax deduction, which include their work related expenses. It is absolutely important to keep in mind that to fully avail the returns you must be organized in terms of saving all respective receipts, as they may be needed in the future. A few circumstances where tax deductions are possible are discussed below:


The most important thing needed by a sales representative is a vehicle, by which he or she travels and meets the clients and finalises deals with them. Therefore, many organisations often provide a car and a driver to the respective employee to carry out his duties.

In this case all the car related expenditures falls onto the shoulders of the company which include fuel charges, repair and damage etc. in case the organisation do not provide with such a facility, the sales representatives have the right to voice their demands.


Since sales representatives travel a lot for business purposes, it is essential that the organisation provides with a meal and travel allowance which applies on different levels, domestic and international. It is interesting to note how the sales representatives cannot claim fully for the tax deductions on meal instead only 50% can be deducted for each travel related meal consumed.


One of the integral duties of all sales representatives is to communicate with the client. There are various modes of communication which he can opt for; telephone, internet etc. The costs associated with such activities can be categorized as the tax deductions. Make sure to save all your bills and mark your business calls respectively.


Sales representatives might be asked to wear a company uniform with a specific logo on it. The cost of buying the uniform, alteration, and laundry are all such activities upon which you can claim a deduction in the tax.


In case you are a hard working sales representative who is determined to learn more about the tricks and tips regarding the field. All such expenses, which are associated to the self-education can be made deductible.

Necessary Supplies

Tax deduction is applicable on items, which are absolutely essential and important for the business without which a hindrance is created.


Companies often promote training activities for its employees specially the sales representatives as they act as a representative of the entire company. The costs associated with the short training sessions are all deductible. These include going for learning new sales techniques, use of computer in the data storage, customer service and satisfaction and so on.

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