So if I'm following this correctly. the store pays the sales tax that should be on the books of sales made, even if paid for by store credit...... thus they put sales tax on store credit to lessen what you can redeem with store credit as a means to compensate/off set what the store is suppose to pay in sales tax?
To me charging tax on "redeemed credit" or "I owe you" that store credit often is, does make much sense because your not taking in money that covers the amounts of sales tax that the sales tax laws say the store owes.
If stores charged a sales tax on trade or entry fees of tournaments which is cash that directly gets turned into store credit, that would make sense to me, because you taking in a specific amount of extra revenue that can be put toward the amount owed for sales tax specifically.
Charging sales tax on purchases paid for with store credit doesn't directly correlate covering the amount of sales tax owed by the store.
how does charging sale tax on store credit benefit a store?
my lgs made this small change in policy and it doesn't make sense to me.
If i buy something on credit and pay nothing to the store, how is this paying store credit to the store?
Items purchased on store credit alone don't bring in tax since all store credit is usually an amount of "I owe you" that the store bears.
Private Mod Note
():
Rollback Post to RevisionRollBack
To post a comment, please login or register a new account.
To me charging tax on "redeemed credit" or "I owe you" that store credit often is, does make much sense because your not taking in money that covers the amounts of sales tax that the sales tax laws say the store owes.
If stores charged a sales tax on trade or entry fees of tournaments which is cash that directly gets turned into store credit, that would make sense to me, because you taking in a specific amount of extra revenue that can be put toward the amount owed for sales tax specifically.
Charging sales tax on purchases paid for with store credit doesn't directly correlate covering the amount of sales tax owed by the store.
my lgs made this small change in policy and it doesn't make sense to me.
If i buy something on credit and pay nothing to the store, how is this paying store credit to the store?
Items purchased on store credit alone don't bring in tax since all store credit is usually an amount of "I owe you" that the store bears.