Credit Card Convenience Fees Taxable in New York

Wednesday, May 9th, 2018

 
 
Customer handing over credit card to salesperson.
Share
Link
New York
General

The New York Department of Taxation and Finance recently ruled that convenience fees for credit card purchases are taxable.

The taxpayer was a club that charged a convenience fee when members or other guests made credit card payments on purchases of tangible personal property. Convenience fees are designed to offset lost revenue from the cost of processing credit card payments.

New York taxes the receipts from sales of tangible personal property and certain services. New York defines "receipts" to include expenses incurred by the seller. A convenience fee is an expense of the seller and is therefore part of the taxable receipts. However, when a purchase includes taxable and nontaxable items, tax only applies to the portion of the convenience fee attributable to the taxable items.

https://www.ttrus.com/Credit_Card_Convenience


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Washington Announces Imported Goods Will Now Be Taxed

Thursday, March 21st, 2019 -The Washington Department of Revenue recently announced that effective March 14, 2019, a retail sales exemptio...

Marketplace Facilitators of Software Products to be...

Friday, March 15th, 2019 -The Commissioner of Taxation and Finance in New York released an advisory opinion that determined third partie...

Arkansas Rules on Taxability of Repairs and Labor Related...

Wednesday, March 13th, 2019 -The Arkansas Department of Finance and Administration recently released an administrative decision addressing ...

Studio Room Rental for Photography Sessions is Subject to...

Wednesday, March 6th, 2019 -The Missouri Department of Revenue (DOR) has released a letter ruling addressing the taxability of studio room...

Unprocessed Sand Not Taxable in Texas

Monday, March 4th, 2019 -The Texas Comptroller recently released a private letter ruling that found the mining and selling of unprocess...

California to Require Additional Registration and...

Friday, March 1st, 2019 -California recently released a special notice for out-of-state retailers who are required to register with the...