Sales tax must be paid on credit card surcharge in Minnesota
MINNESOTA – Be aware: Fees that vendors charge you for credit card transactions are also subject to sales tax, according to a decision from the Minnesota Tax Court.
A business entity that offered vacation and travel rentals said the card processing fees should be tax exempt because the surcharge was listed separately from the cost of the reservation.
However, the court said, even if the credit card surcharge was listed on its own, it was still included in the actual “sales price” for the transaction. That is, the transaction couldn’t be completed without the customer paying the surcharge, and there was no way it could be excluded from a credit card purchase. So sales tax was owed on the fee.
- Share on
Free Training & Resources
White Papers
Provided by Anaplan
White Papers
Provided by Anaplan
Further Reading
President Biden is calling for wealthy Americans and corporations to pay more in taxes. The president outlined a number of changes he belie...
Many businesses are hesitant to spend big bucks on capital improvements or new equipment due to inflation, high interest rates and economic...
The worst of the COVID-19 shutdown measures and George Floyd riots peaked less than three years ago. But the effects continue to rattle sta...
The Internal Revenue Service has extended corporate, business and individual tax deadlines out to June 17 for San Diego, Detroit and dozens...
The last few months of weather’s taken a toll on homes and businesses in many parts of the country. To lighten the load a bit, the IR...
Any business owner who paid employee salaries or health benefits during COVID-19 restrictions will be waiting a while longer for a tax cred...
