Missouri – Retailer may receive bad debt refund on amounts written off by third party, extrapolated refund permitted

October 2013


A retail merchant was entitled to a sales tax refund on bad debts written off by its private label credit card bank. Additionally, the retailer was permitted to extrapolate bad debt amounts for 16 months of a 40 month refund period. Missouri retailers that issue private label credit cards should be aware of potential bad debt refund opportunities consistent with the rationale provided in this decision.

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