Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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495.0000 SALE

Annotation 495.0446


425.0446 Sale on Approval. The Commercial Code provides that, if delivered goods may be returned by the purchaser even though they conform to the contract, the transaction is a sale on approval if the goods are delivered primarily for use. Under a sale on approval, unless otherwise agreed, although the goods are identified to the contract, the title doesn’t pass to the buyer until acceptance. If the seller reports the sale on approval as a taxable sale in the period in which delivery is made, and the buyer rejects the goods in a later period, a claim for refund filed timely should be approved with credit interest computed from the period in which payment was made. 10/10/75. (Am. 2011)