A price match is essentially a return and re-purchase for the firm. Hence, you always get back the tax differential. Newegg may not have a price match policy. It may just be returning the price differential.
A price match is essentially a return and re-purchase for the firm. Hence, you always get back the tax differential. Newegg may not have a price match policy. It may just be returning the price differential.I've never had a place give back tax on a price match. They pay over the tax on the original sales price to the state. Why should they give you an additional discount over and above what they agreed to do?
This could be a real big accounting issue with Newegg, though. Say they refunded you the $30. The $3 of tax they collected from you was never refunded, so they may keep it. That's against the law to keep tax money, even though it isn't technically owed to the state in the form of sales tax, to keep it seems very dishonest.
I bought a computer part 2 weeks ago and just two days ago the price dropped 30$ from the original 150$. I requested for the difference and they approved the 30$. But how about the difference in tax?: NO. I have done price matches at B&M electronic and department stores and they give back the differences in tax. Is this how online stores operate?
It depends on the state to which Newegg remitted the sales tax. The price match may qualify as a manufacturer's rebate or some other term in which case the price match is still includible in the tax base - meaning, the sales tax won't be refunded. If it qualifies more in the sense of a retailer's discount (instantaneous) then the sales tax may be refunded.
It could also be that Newegg doesn't want to go through the hassle of filing a sales tax refund claim for $3. That costs time, money, and the annoyance of dealing with a CPA such as yours truly.
That's the point. Imagine the millions of transactions they keep from. Then you'll know they aren't too far from utility companies adding bs extra fees on the bills.
If they have to report that sale to the state and their state does not have a line on their sales tax form to report refunds, then why would you get the tax back? Illinois has a way to report refunds, but I don't know if other states do or not. Really, though, you didn't return the item, you should be glad you got any difference back. Stores aren't obligated to do that.
At least NE gave you some of the money back. Amazon did not give me any for a lower priced iPod 32GB Touch.
That's the point. Imagine the millions of transactions they keep from. Then you'll know they aren't too far from utility companies adding bs extra fees on the bills.