Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 70 - Sales and Use Tax
Part 29 - Damaged Goods and Returned Merchandise (280-RICR-20-70-29)
Section 280-RICR-20-70-29.6 - Returned Merchandise
Universal Citation: 280 RI Code of Rules 20 70 29.6
Current through December 26, 2024
A. The tax computation does not include the amount charged for merchandise returned by customers upon cancellation of the contract of sale if the full sale price, exclusive of handling charges, is refunded and returned within 120 days from the date of sale.
B. A deduction may, accordingly, be taken for returned merchandise, if the following conditions are fulfilled:
1. The sale is
rescinded under the terms of the sale agreement, or pursuant to the election of
the customer as in the case of a breach of warranty;
2. The full sale price, including that
portion designated to be on account of "sales tax," exclusive of handling
charges paid, is refunded or credited to the customer; and
3. The merchandise is returned within 120
days from the date of sale or purchase.
C. The term "returned merchandise" does not include repossession or recapture of merchandise by legal process, abandonment of contract, voluntary surrender of goods without entire refund or full credit for amount paid, or goods accepted in trade or barter.
Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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