Purchase of "Deal-of-the-Day" Vouchers Not Subject to Tax in Kentucky

Thursday, January 19, 2012

In a recent Sales Tax Facts Newsletter, the Kentucky Department of Revenue explained the taxability of "deal-the-day" vouchers. In Kentucky, the sale of "deal-of-the-day" vouchers (such as those offered by Groupon or Living Social) for good or services will be treated as the sale of a gift card for sales and use tax purposes. Sales tax will not be charged on the sale of the voucher. However, sales tax is due on the total price of the product or service purchased using the voucher.

TRANSACTION TAX NEWS

• 05.16.12 Alabama Enacts Sales Tax Exemption for...

  Alabama Governor Bob Riley recently signed House Bill 307 into...

• 05.11.12 Taxability of Wisconsin Clarifies Tax...

  The Wisconsin Department of Revenue recently published a tax...

• 05.10.12 Tangible Personal Property Sold to Inmates...

  By enacting House Bill No. 4658, Michigan has eliminated its sales...

• 05.10.12 Certain Pasteurization Devices Exempt from...

  The Missouri Department of Revenue recently issued a letter ruling...

• 05.07.12 Glucose Strips Are Subject to Tax in Alabama

  The Administrative Law Division of the Alabama Department of...

• 05.03.12 Alabama to Hold Sales Tax Holiday for Severe...

  On the recommendation of the Tornado Recovery Action Council, the...