LuckyLabrador
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Total Posts:
583
- Joined: 2/6/2007
- Location: Green Valley, CA
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Gift Certificates
Wed, 11/7/07 5:39 PM
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When you sell a gift certificate, do you tax it, because when you run the tab on the person who presents it, tax is again added. How do you handle this?
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porkbeaks
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Total Posts:
2111
- Joined: 5/6/2005
- Location: Hoschton/Braselton, GA
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RE: Gift Certificates
Wed, 11/7/07 8:26 PM
( permalink)
quote:Originally posted by LuckyLabrador
When you sell a gift certificate, do you tax it, because when you run the tab on the person who presents it, tax is again added. How do you handle this?
Fwiw, I've never paid sales tax on any kind of gift certificate. pb
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Big Ugly Mich
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Total Posts:
1287
- Joined: 1/12/2004
- Location: Trevor, WI
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RE: Gift Certificates
Wed, 11/7/07 8:56 PM
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I'm not a restauranteer, but I would sell it for face value, then take the sales tax off the certificate when it's cashed in.
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carolinacooking
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Total Posts:
97
- Joined: 12/29/2006
- Location: Chesterfield, SC
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RE: Gift Certificates
Wed, 11/7/07 9:16 PM
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I tax the sale of the gift cert. I dont ring it up when its redeemed, because it already was a sale. I do note on the back of it if there was any additonal sale, just to see if they are generating any.
dw
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porkbeaks
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Total Posts:
2111
- Joined: 5/6/2005
- Location: Hoschton/Braselton, GA
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RE: Gift Certificates
Wed, 11/7/07 10:26 PM
( permalink)
If you do a Google search on sales tax-gift certificate, you will find that most (if not all) states collect the sales tax when the gift certificate is redeemed. I know this is true of TX, CT, OK, SD, ND, NJ, and NC. pb
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KAYLINDA
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Total Posts:
59
- Joined: 11/3/2005
- Location: CHERRYVALE, KS
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RE: Gift Certificates
Sun, 11/11/07 8:12 PM
( permalink)
Gift certificates shouldn't be taxed when sold, as they are considered a "liability" to your company...(something you owe someone for) rather than a sale at that time. Yes..to taxing when they are used.
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