Recent Sales and Use Tax Developments
Refunds. Sales Tax on returned goods, the sales of which were subject to tax, must be refunded or credited to the consumer and should be deducted from gross sales by the dealer if:
- The goods are returned for a full or partial refund or credit. With a partial refund or credit of the purchase price the dealer must refund the sales tax on the partial refund. With a full refund the entire sales tax must be refunded. The goods must be returned within the time period stated in the dealer'’ refund policy or 180 days after the sale, whichever is sooner.
-
The term “refunded goods” does not include:
- Repossession or foreclosure of the vehicle by legal process
- Abandonment of the vehicle
- Voluntary surrender of goods without an entire refund, or full credit being given for the amount paid
- Goods accepted in a trade-in
Recent Sales and Use Tax Developments