Discounts and Coupons
Discounts and coupons allow customers to buy lodging at a reduced price. The taxable price depends on if you are reimbursed for the discount or coupon being redeemed.
|Are you reimbursed by a third party?||Charge sales tax on:|
|Yes||Total sales price before your subtract the discount amount|
|No||Sales price after you subtract the discount amount|
Daily Deal Website Vouchers and Coupons
Generally, customers buy discount vouchers and group coupons online and then bring them to the retailer for the discount.
The purchase of a discount voucher is not taxable. If the item (or service) is taxable, charge sales tax when the voucher or coupon is redeemed. See the following table for details.
|Do you know how much the customer paid for the voucher?||Charge sales tax on:|
|Yes||Amount paid for the discount voucher|
|No||Face value of the discount voucher|
Note: You must keep records showing how you calculated the tax.
For more information, see Coupons, Discounts, and Other Forms of Payment.