When I sell a Gift Card, I should not be charging Sales Tax.
Sales Tax is charged when they USE the Gift Card.
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When I sell a Gift Card, I should not be charging Sales Tax.
Sales Tax is charged when they USE the Gift Card.
You can use Taxability Information Code (TIC) 10005.
TIC 10005 - Gift Certificates are treated like cash. No sales tax is collected at the time the certificate is purchased. When a customer presents a gift certificate, the customer received credit against the total cost of the purchase and pays the difference, if any. The sales tax applies to the total amount of the purchase, not the amount due after the certificate is deducted.
See also https://taxcloud.net/tic/
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