Md. Code Regs. 03.06.01.06

Current through Register Vol. 51, No. 22, November 1, 2024

Section 03.06.01.06 - Cancelled and Returned Sales

A. A vendor shall refund to a buyer the proportionate amount of sales and use tax that the buyer has paid if a sale is rescinded or cancelled or the property sold is returned to the vendor and the purchase price is wholly or partially repaid or credited. If, in lieu of a refund of the sales price, the vendor credits the amount on the buyer's account, a corresponding credit for sales and use tax previously paid by the buyer shall be made.

B. Whenever any vendor has refunded the tax paid by a buyer on a cancelled or returned sale, the vendor may deduct the amount of the purchase price refunded from the total amount reported as taxable sales and the amount of tax refunded from the total amount reported as tax collected on the vendor's sales and use tax return, provided accurate records of the transaction are maintained. Alternatively, the vendor may apply to the Comptroller for a refund of the tax properly refunded to the buyer if application for it is made in writing within 4 years from the payment of the tax.

Regulations .06 effective August 1, 1947; repealed effective February 15, 1982 (9:3 Md. R. 220)