Tax Rules: Final: 5703-9
5703-9-12 Exchanged merchandise
In the event merchandise purchased from a vendor, upon the
sale of which tax has been charged, is returned to the vendor
in exchange for another item the vendor may, provided he
allows the customer the full purchase price of the item
returned plus the tax thereon, either by credit or refund,
record the net difference between the selling price of the
item returned and the item delivered to the customer in the
exchange as an addition to or deduction from gross sales,
whichever is appropriate.
If the price of the item delivered to the customer in the
exchange is greater than the price of the item returned the
vendor must report the difference as an addition to gross
sales and collect the appropriate amount of Sales Tax
thereon.
If the price of the item delivered to the customer in the
exchange is less than the price of the item returned the
difference in price may be deducted from gross sales.
The provisions of this Rule shall not apply to "trade-ins" so
as to conflict with the statutory definition of "sale" and
"price" as provided in Revised Code 5739.01.
Effective: 1-1-62 as TX-11-12
Promulgated under: 5703.14