How does a retail store distribute gift cards?

How does a retail store distribute gift cards?
Specifically what kind of tax issues are involved in the purchase, if any?
Any special paperwork involved?
Are barcodes absolutely necessary?

Best answer:

No taxes are collected because nothing is sold. all that is happening is one form of payment is exchanged for another form of payment. When the gift card is spent, merchandise is sold and taxes are collected. Companies make money on the millions of collars worh of gift cards that are lost and never redeemed.

Tags: cards, distribute, gift, retail, store

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