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Massachusetts Department of Revenue addresses sales taxation of employee recognition program charges

The Massachusetts Department of Revenue ruled on Jan. 8 that a company was not subject to Massachusetts sales and use tax on charges for the consulting, startup and website design associated with its online employee recognition and rewards program and related program management services. Additionally, the department ruled that transaction fees charged by the company, and gift cards rewarded under the program, weren't subject to sales and use tax. However, sales of merchandise redeemed with certificates through the employee recognition website were subject to sales and use tax.

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