Administrative Code

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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department of Taxation
Chapter 210. Retail Sales and Use Tax

23VAC10-210-670. Gift certificates.

The sale of a gift certificate is not taxable. When the owner of a gift certificate redeems it, in whole or in part, for tangible personal property, the transaction is a taxable sale. For example, if the owner of a gift certificate valued at $25 purchases a $15 pair of shoes, the tax on the $15 sale must be collected by the dealer and paid to the department. When the owner redeems the remaining $10 value of the certificate, the tax on the sale must be collected at that time by the dealer.

Statutory Authority

§ 58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-10-44; revised January 1979; amended, eff. July 1, 1993.

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