Connecticut Department of Revenue Services
Return to CT.Gov Home
State of Connecticut Department of Revenue Services
Taxpayer Answer Center
 Frequently Asked Questions 
Email DRS
 My Mailbox 
  show accessible links  
 Search by Category View Category Hierarchy
  Search Tips 

  Answer ID  
  Select a Category  
  Sales and Use Tax
    Sales Subject to Tax
      Discount Cards

 Printer Friendly Version of This Answer  Print Answer

 Email This Answer  Email Answer
  Selling discount cards

Q. Are the sales of discount cards, where the merchant provides extra discounts on future purchases by customers who purchased the cards, subject to sales and use taxes?


A. A retailer sells discount cards to its customers. Customers purchasing such discount cards from the retailer receive certain benefits on future purchases from the retailer. Typical benefits include cash discounts on purchases and cash back amounts usually in the form of rebates or credits.

The sales of discount cards are not subject to sales and use taxes.

For further information see Policy Statement 2007(5), Sales Tax Treatment of Coupons, Scan Cards, Cash Equivalents, Promotional Items, and Rebates.

(Updated: 2015)

This answer is intended to provide general information concerning a frequently asked question about a current position, policy, or practice associated with the taxes administered by the Connecticut Department of Revenue Services.  It may include an informal interpretation of Connecticut tax law by the Department of Revenue Services (DRS).  However, it is not intended to serve as a legal ruling.

Back to Search Results
  Back to Search Results  

Home | home | Send Feedback

State of Connecticut Disclaimer and Privacy Policy. Copyright © 2002, 2003, 2004 State of Connecticut.