But prepaid cards are different:cahk wrote: ↑Jan 10th, 2018 1:27 amGift cards are exempt from GST.
https://www.canada.ca/en/revenue-agency ... cates.html
Example 10 – Bank gift card
SponsorCo sells a stored‑value gift card issued by BankCo that is accepted as a means of payment for supplies made by various merchants. BankCo and SponsorCo’s logos and a credit card brand are on the card. Cardholder purchases are limited to the amount of money loaded onto the card. The card is neither a debit card (it does not access an individual’s bank account at the bank) nor a credit card (it does not access previously granted credit and it is not possible to spend more than the amount remaining on the card).
At the time of purchase, SponsorCo charges a fee to the cardholder to initiate the card, load the card and open an account with BankCo. SponsorCo undertakes all activities necessary to set up the card account. In order to manage the transactions made with the card, BankCo sets up an account in respect of the card, to which all funds are credited and from which all charges are debited. BankCo charges a fee to the cardholder for the maintenance of such an account.
Does section 181.2 apply to the sale of the gift card?
Section 181.2 does not apply to the sale of the gift card. Although the card has some attributes that are similar to a gift certificate (e.g. a monetary value stored on it), this type of gift card is not a gift certificate.