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.

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