CRA rules that magnetic membership cards qualify as gift certificates for HST/GST purposes

CRA has ruled that membership cards for access to a social networking website which are sold through retail stores and then activated at the stores by scanning a magnetic strip and entering a scratch-away PIN number, qualify as gift certificates for GST and HST purposes.  This position that a gift "certificate" can include a magnetic card is now reflected in the revised version of Policy Statement P-202, which was released in April 2012.

Scott Armstrong.  Summary of 11 August 2011 Headquarters Letter 127020 at ETA s. 181.2.