The State and Local Tax Buzz

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 Vouchers   replaces  previously issued   Working  Draft Directive 11-XX :  Application of Sales Tax to Sales and Redemption of Third Party Coupons. This is significant!!