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Annual maximum discount limits

Arizona

The maximum accounting credit allowed to be taken by a taxpayer in a 12-month period for reporting periods January through December is $10,000. Currently ONESOURCE Indirect Tax Compliance doesn't have a method in place to automatically track the amount of accumulated discount taken from tax period to tax period. The calculation for discount won't limit the amount taken during the year to the maximum allowed.
You can see the total amount of discount tax taken in the current tax period by reviewing Form TPT-2, Column L - Accounting Credit on the transaction detail schedules. Discount should be reviewed to ensure you don't take over the maximum allowable accounting credit for the year. When reviewing detail screens for discount, disregard the amount shown as available credit for current fiscal year since it's based on the current tax period and doesn't take into account any accounting credit taken in previous tax periods.

South Carolina

The maximum total discount allowed to be taken by a taxpayer in the 12-month period beginning July 1 and ending June 30 of the following year is $3000; $3100 for taxpayers who file electronically and $10,000 for out-of-state retailers who voluntarily register with and are approved by the SC Dept. of Revenue to collect and remit tax on their sales into the state. If a taxpayer has multiple business locations, the maximum allowable discount's based on the aggregate of all locations, not each location separately.
The June release, vXX.06.1, starts the beginning of the fiscal year regarding discount. Currently ONESOURCE Indirect Tax Compliance doesn't have a method in place to automatically track the amount of accumulated discount taken from tax period to tax period. The calculation for discount won't limit the amount taken during the fiscal year to the maximum allowed. This will be added in a future release. You can see the total amount of discount on state and local tax taken in the current tax period by clicking on Form ST-3, Line 7 – Taxpayers Discount. Discount should be reviewed to ensure you don't take over the maximum allowable for the fiscal year. When reviewing detail screens for discount, disregard the amount shown as available remaining discount for the current fiscal year, since it's based on the current tax period and doesn't take into account any discount taken in previous tax periods.

This article applies to:

  • PRODUCT: ONESOURCE Indirect Tax,ONESOURCE Sales and Use Tax Compliance
  • State: Arizona,South Carolina