How many of you have purchased a Groupon, LivingSocial, or some other sort of daily deal voucher? Did you notice that you did not pay any sales tax on your purchase? Probably not, but don’t get too excited, this does not mean that you get to bypass the taxman. It does poses the questions, on what amount should taxes be paid and at what stage in the process? Should consumers who purchase and use daily deals be required to pay sales tax on the face value of the coupon or the dollar amount that was actually paid for it? Meaning, if a deal is purchased for $50, but is worth $100, which amount should the buyer be taxed on? And should this tax occur at the time of purchase, or redemption?
What seems to be a minor issue can actually have a significant impact on your wallet. According to Vertex,… Read the rest