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 Personify Health
Further Reading
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...
The IRS is about to put all of the the funding, personnel and technology advantages it now enjoys to use. Count on an upswing in audits of ...
States are always looking for ways to attract new businesses and prevent existing ones from pulling up stakes. Lowering corporate taxes is ...
Wealthy investors are about to lose a tax loophole that IRS allowed for years. The tax cops say its new policy and enforcement will net bil...
Another April 15 came and went, leaving many of us poorer and grumbling about government spending. For business owners and the CFOs and con...
No matter where entrepreneurs decide to start a business, they face a variety of taxes and regulations that cut into the bottom line from t...
