Connecticut Department of Revenue Services
Return to CT.Gov Home
State of Connecticut Department of Revenue Services
About UsPrograms and ServicesPublicationsFormsContact UsHome
Taxpayer Answer Center
 Frequently Asked Questions 
 
Email DRS
 
 My Mailbox 
  show accessible links  
  Help  
 
 Search by Category View Category Hierarchy
    
  Search Tips 
   
    

   
  Answer ID  
480
  Select a Category  
  Sales and Use Tax
    Sales Subject to Tax

 Printer Friendly Version of This Answer  Print Answer

 Email This Answer  Email Answer
 
  Sales tax when coupon is used
  Question
 

Q. If my customer uses a coupon when making a purchase; do I charge sales tax on the price before or after subtracting the coupon?

  Answer
 

A. Sales and use taxes must be calculated on the sales price after all price reductions taken at the time of sale, including deduction taken because a coupon is presented by the buyer. Any additional value assigned by the retailer, such as to double or triple the coupon is also excludable from the sales price.  For example, if the price of the item was $5.00 and the customer presented a $.50 coupon, sales tax would apply to the net price, $4.50.  If the seller doubles the coupon, deducting another $.50 from the sale, sales tax would apply to the net price, $4.00. 

 

This answer is intended to provide general information concerning a frequently asked question about a current position, policy, or practice associated with the taxes administered by the Connecticut Department of Revenue Services.  It may include an informal interpretation of Connecticut tax law by the Department of Revenue Services (DRS).  However, it is not intended to serve as a legal ruling.

 
 
 
  
 
  Users who viewed this answer have also viewed
 
Back to Search Results
  Back to Search Results  


Home | CT.gov home | Send Feedback

State of Connecticut Disclaimer and Privacy Policy. Copyright © 2002, 2003, 2004 State of Connecticut.