Okla. Admin. Code § 710:65-19-89

Current through Vol. 42, No. 4, November 1, 2024

Section 710:65-19-89 - Exchange or return of merchandise

(a)Returns of merchandise. In the event merchandise purchased from a vendor, upon the sale of which tax has been charged, is returned to the vendor in exchange for another item the vendor may, provided he allows the customer the full purchase price of the item returned plus the tax thereon, either by credit or refund, record the net difference between the selling price of the item returned and the item delivered to the customer in the exchange as an addition to or deduction from gross sales, whichever is appropriate, on his report for the current month.

(1) If the price of the item delivered to the customer in the exchange is greater than the price of the item returned, the vendor must report the difference as an addition to gross sales and collect the appropriate amount of sales or use tax thereon.

(2) If the price of the item delivered to the customer in the exchange is less than the price of the item returned, the difference in price may be deducted from gross sales on his report for the current month provided full credit in the amount of the purchase price, including the tax, has been allowed the purchaser.

(b)Restocking charge. In the event a customer returns a taxable item for credit or refund and the seller charges the customer a restocking fee, the sales tax refunded to the customer is on the net amount of the refund after any charge for the restocking fee.

Okla. Admin. Code § 710:65-19-89

Amended at 18 Ok Reg 2823, eff 6-25-01; Amended at 25 Ok Reg 2070, eff 7-1-08