2006-12-09 01:05:07 · 5 answers · asked by Excluz!v 1 in Business & Finance ➔ Taxes ➔ United States
The gift card is like a Credit Card. There is no tax on it until it is redeemed.
2006-12-09 01:10:03 · answer #1 · answered by hi_im_elmer_fudd 2 · 1⤊ 0⤋
Think of buying a giftcard as an exchange of currency. You don't pay sales taxes on any type of currency exchange. The sales tax is paid at the time of redemption. If you were taxed on the card itself you would essentially be getting taxed twice on the expenditure of the same funds.
2006-12-09 09:28:20 · answer #2 · answered by Mike 1 · 1⤊ 0⤋
No, because neither goods nor services are changing hands.
There will be tax however when the receiver redeems the card.
2006-12-09 09:08:49 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋
no there isn't. if you get a $10 gift card, you pay $10
2006-12-09 09:08:32 · answer #4 · answered by megansa0811 2 · 0⤊ 0⤋
depends on the state
2006-12-09 09:13:10 · answer #5 · answered by whiteafrican01 3 · 0⤊ 0⤋