W. Va. Code R. § 110-15F-6

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 110-15F-6 - Exchanging a tax-exempt purchase after the Holiday ends

6.1. When a customer purchases an eligible item during the Holiday and later exchanges the item for the same item (different size, different color, etc.), no tax will be due even if the exchange is made after the Holiday ends, unless the sales price of the second item is greater than the sales price of the exchanged item. In this situation, the retailer must collect tax on the entire sales price of the exchanged item unless the exchange occurs during the Holiday and the sales price of the second item is less than the applicable threshold.

6.2. When a customer purchases an eligible item during the Holiday and later returns the item and receives credit on the purchase of a different item, the appropriate tax must be collected measured by the full sales price of the newly purchased item, unless the new purchase occurs during the Holiday and the sales price is less than the applicable threshold.

Example 1: During the Holiday, a customer purchases a $90.00 dress that qualifies for the exemption. Later, during the Holiday, the customer exchanges the $90.00 dress for a $130.00 dress. Tax is due on the $130.00 dress. The $90.00 credit from the returned item cannot be used to reduce the sales price of the $130.00 item to $40.00 for exemption purposes.

Example 2: A customer purchases a $35.00 shirt during the Holiday. After the Holiday ends, the customer exchanges the shirt for a $35.00 jacket. Since the jacket was not purchased during the Holiday, tax is due on the $35.00 price of the jacket.

W. Va. Code R. § 110-15F-6