“Taxable Amount of Vouchers Purchased From Deal Company” by Frank C. Carnahan

In Letter Ruling No. LR 7156, dated October 1, 2012, the Missouri Department of Revenue discussed the amount that is subject to sales tax when a voucher such as Group on or Living Social is used, finding that the amount depends on the nature of the voucher. If the voucher offers a specific dollar value that may be used toward the purchase of unspecified products or services, the face value of the voucher must be included in gross receipts even if the amount paid for the voucher is less than the face value. If the voucher offers a specific product or service for the price paid for the voucher, the voucher price paid must be included in gross receipts.
The ruling specifically discussed a taxpayer offering a $29 voucher for yoga classes through a third party deal company for one month of unlimited yoga classes valued at $110. The Department of Revenue determined that the taxpayer should collect and remit Missouri sales tax on the price paid for the voucher, explain that in this case, customers pay $29 for one month of unlimited yoga classes, not for a voucher worth $29 for anything the taxpayer may sell. Thus, the taxpayer must include $29 in gross receipts subject to tax.