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| *Ostroff, Fair and Company>>>Canada Taxes |
Is there tax on gift certificates? |
I bought a gc at a salon for services worth $160 and was charged taxes. I thought taxes were payed at time of redemption? Sounds like you bought services worth $160, not gift certificates worth $160 in cash. If you paid for a service, you gotta pay tax. If you're buying a true gift certificate which can later be used like cash, then there shouldn't be any tax (at least not in the US, and I would guess these rules are universal). not at the time of purchase, but they do charge tax on the bill Weird. But keep your receipt and make sure to tell the recipient that you've paid the taxes so she should get $160 worth of actual services. They shouldn't have charged you tax. A gift certificate is nothing more than store credit. |
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