Are barters and exchanges taxable?
Yes. Barters or exchanges are considered the same as making sales or purchases. The retail value of the property or services received is the amount to which tax will apply. For example, assume that you are a retailer of electronic equipment and owe $500 for dental care. In place of cash, you provide a television set from your inventory as full payment. The transfer of the television is considered a taxable sale, and you must collect tax on the $500.
Yes. The use of barter or exchanges is considered the same as making sales or purchases under the Sales and Use Tax Laws. The fair market value of the property or services received is normally the amount to which tax will apply. For example, assume that you are a retailer of electronic equipment and owe $500 for dental care. In place of cash, you provide a television set from your inventory as full payment. The transaction is considered a taxable sale, and you must report and pay tax based on the $500.
