Illinois DOR Clarifies Taxability of Deal-of-the-Day Vouchers in New GIL

The Illinois Department of Revenue (DOR) has issued a general information letter regarding the taxability of deal-of-the-day vouchers. The Department held that sales of deal-of-the-day vouchers, which provide the right to redeem for tangible personal property or services in the future, are sales of intangible personal property and not subject to Retailers’ Occupation Tax or other sales taxes. However, when such vouchers are redeemed by the customer for tangible personal property, the redemption transaction is subject to Retailers’ Occupation Tax based on the amount paid for the voucher or the full selling price if unknown. [[Il. Dep’t of Revenue, General ...