LIS

Virginia Law

Administrative Code

Creating a Report: Check the sections you'd like to appear in the report, then use the "Create Report" button at the bottom of the page to generate your report. Once the report is generated you'll then have the option to download it as a pdf, print or email the report.

Virginia Administrative Code
Title 23. Taxation
Agency 10. Department of Taxation
Chapter 210. Retail Sales and Use Tax
3/12/2025

23VAC10-210-430. Coupons (redeemable).

A. Manufacturer's coupons. The value of a manufacturer's coupon is included in the sales price of the advertised merchandise. For example, when a retailer accepts $.80 in cash and a manufacturer's coupon valued at $.20 for a product, the tax is computed on $1.00.

However, where a retailer redeems a manufacturer's coupon for an amount in excess of the coupon's value, e.g., "double coupon value" discounts, the excess is treated as a discount to the product's price and may be deducted in computing the tax. For example, a retailer advertises that he will give double value for all manufacturer's coupons. A customer purchases a $3.00 jar of coffee and gives the retailer a $.50 manufacturer's coupon, thus paying only $2.00 for the coffee. The tax is computed on $2.50 which is the sales price of the coffee less the extra $.50 retailer discount.

B. Retailer's coupons. The value of a retailer's coupon is not included in the sales price of the advertised merchandise. For example, when a retailer accepts $.80 in cash and a retailer's coupon valued at $.20 for a product, the tax is computed on $.80. This coupon has no value to the retailer and is an advertisement of a discount.

Statutory Authority

§§ 58.1-203 and 58.1-602 of the Code of Virginia.

Historical Notes

Derived from VR630-10-27.2 §§ 1, 2, eff. July 1, 1993.

Website addresses provided in the Virginia Administrative Code to documents incorporated by reference are for the reader's convenience only, may not necessarily be active or current, and should not be relied upon. To ensure the information incorporated by reference is accurate, the reader is encouraged to use the source document described in the regulation.

As a service to the public, the Virginia Administrative Code is provided online by the Virginia General Assembly. We are unable to answer legal questions or respond to requests for legal advice, including application of law to specific fact. To understand and protect your legal rights, you should consult an attorney.