The Government cannot audit and collect taxes for sales and revenues not received. The tricky part is the vendor will only recieve a cheque from the deal provider wagjag, groupon, etc for the vendor portion of the deal.
The HST auditors cannot possibly audit anything other then sales which means revenue recieved and their only means of proof is sales deposited to business bank accounts as a means of tracing and verification………. Hi Trueler, I believe Mom is correct, although it would be best to check into the laws with a tax expert, which I am not…. Has anyone been in this situation lately that could shed some light on the rules? Thanks for information! Could you please clarify one thing with a tax lawyer if you have a chance?
Usually it works in this way. Is this situation legal? I though it is the same as applying manufacturers coupon. First taxes are calculated, and then discount applies. Is it true with the new HST laws that these places recoup more of the taxes back in compensation hence making it to their benefit to charge over and above?
Is it different in US? What is the reason that you are not charged at the time of service? Probably deal already includes taxes? Regardless, Dealathons, it should clearly state and explain to the customer what the taxes are to be paid on full amount or discount prices.
When a person purchases a voucher from any daily deal site the taxes are technically not allowed to be charged. Only once the service is redeemed does the tax come into effect, otherwise the voucher is the same as cash. You must also remember that if a daily deal site charges tax it is like guaranteeing the voucher will be redeemed and we all know that not every voucher gets redeemed.
So this is the reason the taxes are paid at time of redemption. By obtaining or purchasing a Coupon through the Site, you acquire the right to redeem the Coupon with the Merchant. Any service fee retained by Groupon from the sale of a Coupon, if applicable, is compensation to Groupon for marketing, promoting, advertising, and distributing the Coupons on behalf of the Merchant.
As the issuer of the Coupon, the Merchant shall be fully responsible for any and all Liabilities, caused in whole or in part by the Merchant, as well as for any Liabilities arising from any regulatory action. Coupons have no cash or residual value. Groupon is not a party to any transaction that the Merchant and you may enter into as a result of you purchasing any Coupon.
Merchant Gift Cards are offered by Merchants to consumers subject to the terms and conditions specified by the Merchant on the face of the Merchant Gift Card. Any service fee retained by Groupon from the sale of a Merchant Gift Card is compensation to Groupon for marketing, promoting, advertising, and distributing the Merchant Gift Cards on behalf of the Merchant.
As the issuer of the Merchant Gift Card, the Merchant shall be fully responsible for any and all Liabilities, caused in whole or in part by the Merchant, as well as for any Liabilities arising from any regulatory action. Groupon does not make any warranty in relation to the Merchant Gift Cards, including, without limitation, their validity or value.
Groupon is not a party to any transaction that the Merchant and you may enter into as a result of you purchasing any Merchant Gift Card. Your information will be provided to Grubhub via a token and Grubhub will charge your credit card for these orders.
Your relationship with Grubhub begins upon placement of your food order, and Grubhub handles all aspects of your food ordering, fulfillment, and delivery. The Grubhub Terms apply solely to your relationship with Grubhub for those services. Through the Site, certain Merchants allow you to schedule use of your Voucher on a specific date and time i.
Any additional charges that may be charged after the Booking, such as applicable gratuity, will be disclosed in connection with the Booking. Your Booking is not complete until you receive confirmation from Groupon that the Booking is confirmed. Any scheduling restrictions, such as maximum group size or time and date availability, will be specified in connection with the Booking. A Booking may not be sold, auctioned, or bartered. Additionally, the Merchant is solely responsible for the care and quality of all goods and services it provides to you.
Groupon does not facilitate nor is it liable for any special requests that the Merchant may accommodate at its discretion.
If you purchase a Voucher but do not make Booking, the terms applicable to the amount paid and promotional value for traditional Vouchers apply. Restrictions regarding cancellation or rescheduling deadlines and availability of appointments may vary by Merchant and will be no less than 24 hours before your scheduled Booking, unless stated otherwise in connection with the Booking.
If you do not cancel or reschedule your Booking before such cancellation or rescheduling deadline, your Voucher will be redeemed after such deadline passes. Groupon will not provide a refund for any missed Booking if you do not cancel or reschedule before the deadline stated in connection with the Booking.
Products that you purchase through the Site are subject to the terms below:. Terms of Sale. Additional terms applicable to traditional Vouchers. A traditional Voucher is any Voucher other than a Coupon, ticket, a Local Pick-Up Voucher described below , or a Voucher redeemable for ticketed events e.
A traditional Voucher has two separate values: i the amount paid and ii the promotional value. The promotional value is the additional value beyond the amount paid. The Merchant is responsible for permitting you to redeem the Voucher for at least the amount paid, even after the promotional value has expired.
The promotional value of a traditional Voucher may not be combined with other offers and no portion of its value is intended to cover tax or gratuity. Traditional Vouchers are not reloadable, meaning that the amount paid of the Voucher cannot be increased, but are fully transferrable. Some Vouchers are redeemable for a ticket for admission, or may be used as a ticket for admission, to a specific event at a named venue.
Tickets and Admission Vouchers are final sale and non-refundable , subject to the Extraordinary Event Policy, unless otherwise stated. Tickets and Admission Vouchers do not include any applicable gratuity.
Unless a specific exception is made, Tickets and Admission Vouchers are not eligible for upgrades and are not transferable. Certain resale premiums and restrictions may apply. Tickets and Admission Vouchers obtained from unauthorized sources may be lost, stolen, or counterfeit, and if so are void. Venues and Events. Opening acts, as well as individual performers, are subject to change or cancellation at any time without notice or recourse by you.
Venues may search you as a condition of admission and ban or restrict certain items from being brought to the event and impose other rules on ticket-holders.
You agree to all such rules and conditions and waive any related claims that may arise in conjunction with their imposition or execution. You voluntarily assume all risks and danger incidental to any event for which any Tickets and Admission Vouchers are issued, whether occurring before, during or after the event, and you waive any claims for personal injury or death against Groupon, the venue, the issuer of the Tickets and Admission Vouchers, and all of their respective affiliates, agents, officers, directors, owners, and employees on behalf of yourself and any accompanying minor.
You agree not to record or transmit or aid in recording or transmitting, any description, account, picture or reproduction of any event for which you purchase Tickets and Admission Vouchers. You agree that any event for which you purchase Tickets and Admission Vouchers is a public event, that your appearance and actions inside and outside the venue where the event occurs are public in nature and that you have no expectation of privacy with regard to your actions or conduct at the event.
Trade-In Program The following terms and conditions apply to our trade-in program. For a Voucher to be eligible for trade-in: Groupon, in its sole discretion, must designate the Voucher as eligible. The code on the Voucher must have not been viewed or the Voucher must have not been redeemed. The trade-in must occur either a between purchase and the two 2 weeks after the promotional value expiration date, or b only during the two 2 weeks after the promotional value expiration date, or c the time period otherwise designated by Groupon.
Unless otherwise specified, a Getaways Flash Deal is non-transferrable. A Getaways Flash Deal may not be sold, auctioned, or bartered. Cancellations to Getaways Flash Deals may only be made through Groupon until the deadline specified in connection with the Getaways Flash Deal. Groupon strongly encourages all travelers to obtain independent travel insurance. The promotional value cannot be combined with other offers. However, as stated above, Florida has taken the inexplicable position that tax is due on the original, non-discounted price of the good or service.
The logic Florida and many other states have applied does not logically follow and this may create an opportunity for your client or company to save sales tax in the Groupon online voucher scenario.
Many online vouchers have an expiration period of six months or less created contractually. Often contained in the fine print, however, is language stating that the merchant may be forced to redeem your voucher after the expiration date. This arises because many state consumer protection laws e.
Florida, Section If the customer is entitled to the property by law and does not claim the property, all 50 states and Washington D. Under escheat laws, any unclaimed property will, eventually, become property of the state. The exact time frame differs but all jurisdictions require the holder the merchant in this case to turn the property over to the state after a certain period of time. States will often include escheat reviews of company records during a state tax audit and, given the budget deficits faced by most states, one can safely assume than this issue will not be overlooked.
Even worse, there is usually no statute of limitations to prevent states from claiming escheat rights in property many, many years from now.
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