Actually, you kinda arteI'm not paying $2.19 for a can.
How Coupons Work, in the legal sense (at least, how it was explained to me when I worked in retail):
Let's say...
A product retails for 70 cents.
You have a 20 cent off coupon.
What is your purchase price?
It's still 70 cents.
You may only be required to pay only 50 cents of that in cash, but you still pay the remaining balance of the full purchase price with your 20 cent coupon.
The retail is still 70 cents, and that's what you pay taxes on.
It sounds like what you are dealing with here is a "virtual" coupon, where you get to use a coupon, without actually having to produce a physical coupon at the time of purchase. The coupon is nevertheless assumed to exist, if only in a legal sense.
Read the fine print on just about any coupon that's accepted nationally, and you'll see that even "free" coupons state something along the lines of "the consumer must pay any and all taxes, based on the usual retail price of the product".
9. How do I handle price discounts, manufacturers' rebates, coupons, and trade-in allowances?
Price discounts – The tax base is reduced when the discount is allowed at the time of sale. Also qualifying are cash and term discounts allowed by a vendor and taken by the consumer.
Coupons – The tax base is reduced when the customer uses a coupon supplied or published by the vendor free of charge. Manufacturers' coupons that are redeemable by any vendor and for which the vendor will be reimbursed by the manufacturer do not reduce the tax base.
Manufacturers' rebates –- The tax base is never reduced by any form of rebate for goods and services sold. The vendor must charge tax on the total amount charged at the time of the sale.
I repeat:What?as a writer I'm...![]()
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