Gift certificate example

Purchases of gift certificates are not subject to Wyoming sales and use tax, since they represent merely an exchange of intangible personal property, money for a certificate with a money equivalent. Whether sales and use tax applies to a subsequent transaction in which the gift certificate is redeemed depends on the nature of that transaction. For example, if the recipient of a gift certificate redeems the certificate by purchasing a nontaxable service, the transaction would not be taxable. (Sales and Use Tax Bulletin #11, Wyoming Department of Revenue, September 30, 2004.)

Copyright CCH Incorporated: Federal and State Tax Oct 26, 2004
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