Gift Cards and sales tax:

Tuesday, December 10, 2013

Commissioner Sullivan Advises Shoppers:

Don’t Get Taxed When Buying Gift Cards

Hartford – While holiday shoppers scour Connecticut stores looking for the perfect gift, Revenue Services Commissioner Kevin B. Sullivan reminded retailers and shoppers that the sale of gift cards and gift certificates is not subject to the Connecticut sales tax.

Shoppers who have been charged sales tax when buying gift cards or gift certificates should return to the store with their receipt and ask for a refund, advised Commissioner Sullivan.

“A gift card is the same as a gift of cash; no tax is due until that gift is used, said Commissioner Sullivan. “When people use those gift cards to purchase taxable items, that is when stores should charge and collect Connecticut sales tax.”

Taxpayers with questions about the Connecticut sales and use tax can visit the Department of Revenue Services (DRS) website at www.ct.gov/DRS or call 1-800-382-9463 outside the greater Hartford area, or (860) 297-4753 from anywhere.