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Showing posts from June, 2012

Massachusetts' Revised Guidance on Groupons & Sales Tax; An 'About Face' or Simply a More Reasonable Approach?

Revised Administrative Guidance:The tax implications of Groupon, LivingSocial and other deal-of-the-day transactions are undoubtedly a topic I’m passionate about.  If you’re a  frequent visitor to The  State and Local Tax “Buzz”, you’ve likely read at least a few of my prior contributions on this topic.

Today I’m back to reporting on a new, or should I say updated, "Groupon state tax" development - and with good reason!
Yesterday, the Massachusetts Department of Revenue (“the Department”) issued a revised Draft Directive on its position on the impact of deal-of-the-day (e.g., Groupon, LivingSocial) promotional discounts on sale price subject to sales tax.
The Department’s Working Draft Directive 12-XX: Application of Sales Tax to Sales and Redemption of Qualifying Promotional Vouchersreplaces previously issuedWorking Draft Directive 11-XXApplication of Sales Tax to Sales and Redemption of Third Party Coupons.
This is significant!!  It's significant because the Department’s…