Redeeming points in Loyalty

AnatoliaAnatolia Member Posts: 1

I'm wondering how people are dealing with the tax when people redeem points. Tax needs to be captured somewhere. Am I doing something wrong? For example if an item is $50, in NS there is $7.50 in tax that needs to be remitted. Currently my system is set up now that if someone uses $50 worth of points there is nothing left owing. The $7.50 still needs to be paid. How are people dealing with this. Is it possible for the 'programmers' to change from taking the value of points redeemed off the total vs the subtotal?


Thanks

1 comment

  • AzTAzT Member Posts: 61 ✭

    Speak with a local tax account or attorney to be sure, but in most states in the US reward point redemption reduces the sales tax. If you do still need to charge sales tax I would need more information about exactly the type of reward you are offering to suggest a solution. For example, is the reward just for a specific product, any product in a category, etc.

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