The few times I've sold on consignment, it always worked like this: The shop asked me what I wanted to get out of the instrument. Let's say I wanted $1000. If their rate was 20%, they'd divide $1000 by (100% - 20%). So that would be $1000/.80 = $1250, which is what they'd list the instrument for. Work it in reverse (ain't algebra grand), and 20% of $1250 is $250 for the shop, while 80% is $1000 for me. Tax was strictly a matter between the shop and the buyer.
If the instrument sold (and they all did), I'd get the amount I'd agreed to accept ($1000 in this case) with no additional deductions.
If 10% tax were collected (our rates locally are lower but that's a simpler figure to work with), then the buyer would pay a total price of $1250 + $125 = $1375. I'd get my grand, the shop would get its $250, and the tax collector would get $125. Again, neither I nor the shop took the tax hit. It's the buyer's responsibility.
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Bob DeVellis
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