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  
481
  Select a Category  
  Sales and Use Tax
    Filing and Completing the Return

 Printer Friendly Version of This Answer  Print Answer

 Email This Answer  Email Answer
 
  Sales tax when manufacturer rebate is offered
  Question
 

Q. If the manufacturer offers a rebate on the product; do I subtract the rebate amount before calculating the tax?

  Answer
 

A. Retailers must collect tax on the full sales price paid for which tangible personal property or taxable services are sold, even though the purchaser may later obtain a cash rebate from the manufacturer or other third party. The terms "sales price" and "gross receipts" are defined in Conn. Gen. Stat. §12-407(a)(8) and (9) to include "the total amount for which tangible personal property is sold . . . or the total amount for which any service rendered . . . or the total amount of payment or periodic payments for which tangible personal property is leased by a retailer . . . ." Because the initial purchase of the item and the honoring of a rebate claim by the manufacturer are two separate and distinct transactions, the rebate does not reduce the sales price paid for the item.

(Updated: 2015)

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.