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Showing posts from January, 2012

As We Wait for Massachusetts, More States Issue "Groupon Sales Tax" Guidance

Administrative Guidance:  Groupons and Sales Tax! Now here's an issue that states are paying close attention to - specifically how discounts offered through internet based "deal-of- the-day" marketing companies, such as Groupon and LivingSocial, impact the sales price subject to sales tax. In this post, I provide an update on Draft Guidance issued by Massachusetts last fall and on additional states that have come forward with administrative guidance in recent months.  You probably won't be surprised to find out that the states approaches vary - but more on that in a bit!
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This past September, I wrote post a post entitled “Wondering How Sales Tax Applies to a Groupon? Massachusetts Issues Draft Guidance” in which I gave an overview on a Massachusetts Department of Revenue ("the Department") Draft Directive that had just been issued to address the sales tax implications of third party e-coupons discounts. (See Massachusetts'Working Draft Directi…