CRA corrects error in GST/HST Policy Statement re discounted gift certificates

In the version of Policy P-202 which was outstanding up until April of this year, CRA stated that one of the characteristics of a gift certificate (which is treated for GST and HST purposes similarly to money) is that the consideration for its purchase "is given in the amount of the stated value."  This previous requirement that the gift certificate not be purchased at a discount from its face amount has now been corrected by CRA.

In particular, CRA has acknowledged that vouchers purchased on-line from a "Groupon" type of vendor still qualify as gift certificates even though they are purchased at a discount from their face amount and the participating merchants have agreed to honour the vouchers at their face amount.  This position now is also reflected in the revised version of P-202.

Neal Armstrong.  Summary of 19 July 2011 HQ Letter 127619 under ETA s. 181.2.