Rescinded Sale, Refunds Of Purchase Price

Sections 28-2-608, 63-3612, 63-3613, Idaho Code IDAHO ADMINISTRATIVE CODE IDAPA 35.01.02 State Tax Commission Idaho Sales & Use Tax Administrative Rules Section 046 Page 23 01. A Rescinded Sale. A transaction in which the seller and buyer place each other in the same positions they were in prior to entering into any taxable transaction; and a transaction which meets the rules of the Uniform Commercial Code for revoking acceptance in whole or in part. (7-1-26) 02. Refund of Remitted Sales Tax. Where a seller has collected and remitted tax on the sale and has refunded it to the buyer on rescission, the Commission will refund or credit the seller accordingly. The burden of proving a rescission is on the person claiming the refund or credit on a rescinded sale. See Section 117. (7-1-26) 03. Refund Reduced. The sales tax refunded to the buyer is reduced by the amount of sales tax due on the seller added charges to recover depreciation, buyer usage, or other costs on the customer return. (7-1-26) 04. Restocking Charge. If a seller places a restocking charge on returned merchandise, the charge isn’t taxable, and the sales tax refunded to the buyer in not reduced. (7-1-26) 05. Optional Warranty and Other Contracts. Payment of the purchase price to the buyer pursuant to an optional warranty or contract between the seller and the buyer doesn’t constitute a rescission of the sale or refund. (7-1-26) 06. Documentation. To obtain refund credit, the seller will keep adequate documents to support their claim for refund or adjustment. (7-1-26)