Retail Sales Tax Paid in Error on Gift Cards

Information Notice 77
Published: December 2009
Content last reviewed: August 2010

Notice to the reader: For Retail Sales Tax (RST) – On July 1, 2010 the 13 per cent Harmonized Sales Tax (HST) took effect in Ontario replacing the existing provincial Retail Sales Tax (RST) and combining it with the federal Goods and Services Tax (GST). As a result, RST provisions described on this page and in other publications ended on June 30, 2010.

Effective July 1, 2010 this publication was archived for RST purposes only. Use caution when you refer to it, since it reflects the law in force for RST at the time it was released and may no longer apply.

It has been brought to the attention of the Ministry of Finance that some taxpayers have been charged retail sales tax (RST) in error on the purchase of gift cards. Gift cards are exempt from RST.

In cases where purchasers have been charged RST incorrectly on gift cards, vendors may refund the tax to the customer if the original sale is cancelled and the transaction is re-recorded as an exempt transaction.

Otherwise, the customer may claim a refund of RST paid by filing a General Application for Refund of Retail Sales Tax [PDF-485KB] with the ministry within four years of the date the tax was paid.