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

**Flag: Stale — principle only** — The principle holds; a figure or date in it may not. Check the figure before you use it.

**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

## Sources

- P-202 (primary): https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/p-202/gift-certificates.html

Jurisdiction: FED · Verified 2026-08-27 · Review: legislative