Discounts and Coupons
Discounts and coupons allow customers to purchase goods and services at a reduced price.
Examples of discounts and coupons:
- Buy one, get one free
- Deal-of-the day
- Manufacturer coupons or discounts
- Membership discounts
- Retailer coupons or discounts
The price you charge tax on 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 you subtract the discount amount|
|No||Sales price after you subtract the discount amount|
In-store discounts that are reimbursed by a third party are treated like a manufacturer’s coupon or discount even though the customer does not present a physical coupon.
Note: Sales of coupon books are not taxable.
For more information, see Coupons, Discounts, Rewards, Rebates, and Other Forms of Payment.