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Showing posts from September, 2012

Massachusetts Issues Final Directive on Applying Sales Tax To Third-Party "Deal-of-the-Day" Qualifying Promotional Vouchers

If you’re a frequent visitor to The State and Local Tax “Buzz”, you know that I’ve written several posts on the evolving state tax developments dealing with how states are opting to “tax” Groupon transactions.

Specifically, I’ve reported on the administrative guidance that various states have issued, dealing with whether a “deal-of-the-day” certificate or voucher, such as those marketed and distributed by companies like Groupon and LivingSocial are subject to sales tax when the “deal” voucher is sold.  I’ve also covered how the same states have decided sales tax should be calculated when a Groupon, LivingSocial or other “deal-of-the-day” certificate or voucher is redeemed for products or taxable services.

In general, states have followed two approaches. Some states have decided that sales tax is due on the full value (the undiscounted sales price) of the product or taxable service acquired when the subscriber presents their “deal-of-the-day” certificate or voucher to the participating…