Gift cards and HST

[spider]

Today I purchased a $20 Gift Card at MacDonalds and when I got home and looked the bill I realised that I had been charged HST on my purchase, is this right?

Will the person to whom I give the card also be charged HST when he uses it?

 

[khris]

That's an interesting question. You shouldn't pay any tax when buying a gift card, only when spending.

 

[Dan416]

I worked in retail and a $20 gift card would be $20

 

[Peepers]

According to this consumer alert from the Ontario government, consumers are NOT to be charged HST on the purchase of Gift Cards!

http://www.sse.gov.on.ca/mcs/en/Pages/Consumer_Alert_Gift_Card_Taxes.aspx

 

[spider]

Ooops,
I re-checked the bill this AM, the gift card was one of 18 entries that appeared to be totalled and tax applied to that total. Totalling the 17 entries less the $20 gift card and applying the HST produced the same amount as the bill shows. I guess the cash register is smart enough to exclude the gift card from the taxable total even though it doesn't appear to have done so.
Sorry 'bout that.

 

[W. K. Lis]

In some countries, they pay the value-added (sales tax/HST/whatever) tax to everything, including food. Then the taxpayers have to fill out their income tax returns to get back a portion of the tax collected (on food, children's clothing, medicine, etc.) as a refund. Of course, if one does not fill out their income tax (IE. tourists), they don't get the refund. Still, it ends up as a free loan for the government until they issue the refund.

 

[James]

I recently bought a Cadillac Fairview gift card and they charged me an additional $1.50 "card processing" fee.