TIM-04 — Gift certificates and gift cards (s.181.2)

Gift certificates and gift cards (s.181.2): issuing or selling a gift certificate for consideration is deemed not to be a supply and attracts no GST/HST. On redemption it is consideration for the underlying supply and tax applies then, calculated on the full price. CRA's example: a $100 item plus $5 GST, less a $20 certificate, means the customer pays $85 — tax is still calculated on $100. A gift card qualifies if it has a stated monetary value, was issued for consideration, is accepted as payment, imposes no obligation on the bearer beyond presentation, and has no intrinsic value