Gift Cards and new EU VAT regulations

Shopify Partner
2 0 0

Hi there,

thanks @Teoalessi for sharing this issue with the community.


We do confirm this is a mandatory request for all the EU based marchant: gift card must be vat included when sold.


Please check below the actual Shopify behaviour:


Schermata 2019-10-16 alle 12.01.14.png


Unfortunately this actual Shopify limit turns the gift card "illegal" in EU because all merchants selling gift card without VAT could be accused of tax evasion.


IMHO having the "charge taxes" option available on gift card product as well will solve all. At the moment, trying to do this, the Shopify feedback (after flagging charge taxes and save) is the following error...



Senza nome.jpg



This issue is even more relevant in cases in which the merchant is selling phisical goods (I think 90% of the EU Shopify stores), because at the moment of the sale of the gift card the merchant know it will be used only on our store and only for products that are subject to 22% VAT.


@VictorCould you please let us know how to proceed in order to have this feature request added in the Shopify tech roadmap asap? Otherwise potentially all the EU Shopify store selling phisical goods will be forced to stop selling gift card (loosing money expecially during the Christmas period).


Looking forward to hearing you soon





Shopify Staff
Shopify Staff
194 23 42


Hi @Giacomo143,


Thank you for providing more context on this issue. I have flagged this with our technical team here and they have asked me to submit this to them for a full review. I will be doing that and they'll take a look at this in more detail.


Kind regards,


Victor | Shopify Social Care

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New Member
1 0 0

I have just setup gift cards and have the exact problem described above. Until resolved I would have to do a manual VAT report on gift cards and counter it against the VAT calculated at the actual sale  :-(

Shopify Partner
2 0 0

Hi there,

yes, @theprince you are right. I've been in touch with a Shopify Guru asking me all the info about this new regulation.


After sharing all the info (providing detailed informations from several trusted source - uk governement for ex), unfortunately the Shopify feedback received by mail was this:


Ella Bamba (Shopify)

Oct 25, 17:01 EDT

Hello Victor,

This is Ella, one of the Gurus here in Shopify. I am helping Gavin with some emails today! :)

Thank you so much for reaching us out regarding the gift card tax. I know how important it is for you. Since you have me, let's work through it together! :)

I can definitely understand where you're coming from, I would absolutely feel the same if I'll experience this. We definitely have no intention of making anyone(that includes you!) feel that we're leaving you guys alone in the dark. We always want to make sure that everyone using our platform and/or services feel safe, comfortable, at ease, and happy! Rest assured that we are, and will always be, continuously improving and developing our platform.

|Shopify Help Center :: Frequently asked questions about gift cards|

Since this is something that isn't available with our platform yet, as promised by my other co-guru, he raised this concern up already with our developer. Although there's no guarantee of an approval and when will it be rolled out in the future updates, but I have high hopes for this! :)

Alternatively, you may refer to this helpful document to know more on how gift card works in Shopify.

Since this is something that isn't available with our platform yet, as promised by my other co-guru, he raised this concern up already with our developer. Although there's no guarantee of an approval and when will it be rolled out in the future updates, but I have high hopes for this! :)

You can keep an eye on our Shopify News page to keep updated for the latest news about our platform.
That's about it from me for now! Furthermore, please know that my help doesn't end here so let me know if you have additional concerns or need further assistance and I'd be glad to lend a helping hand. :)

If you have further questions or clarifications, please do not hesitate to let me know in this email. However, I want to inform you that I'll be gone for my day-off, so you may not get a reply from me immediately. I will be back on Monday. If you would like to speak to us more, you may contact us on our live channels via Chat or Phone.


Guru | Shopify


So, basicallty this is another example on how Shopify does not take care of European Merchants...As all of you can see this is a very standard feedback (including copy and paste error - same quote 2 times).


That said, at the moment we have to manage VAT report manually and outside Shopify. Moreover whan we sell a gift card, for Shopify this doesn't generate sales, so the reporting is affected as well of thi general "gift issue".


As Shopify partner, this issue is generating a lot of issue to all my clients. IMHO it's absurd that Shopify offers QR code, Apple wallet integration and so on for gift card, but they do not take care of the most important point: to be compliant with the legislation of the country in witch they sell the Shopify platform.

I think all the EU merchants are able to list all the missing features we are still waiting for, this forum is full of requests that are still pending , some of them since 2 years :-)


Naming a few of them: codice fiscale request at checkout (mandatory in Italy), invoice request fields (available only for Plus merchant forced to customize by themself the checkout and working around using metafiled, order notes, etc), recovery cart mail that does not check the stock availability before send the mail (very very disappointing), etc.


I think Shopify should fix at least all the mandatory features before spending a lot of time and effort promoting their product in the EU area, simply because the product is still not 100% compliant to the legislation.


I'm still believing Shopify is one of the best product in the market today, but honestly I'm loosing hope of having some of this features. We do need to help each other sharing workaround waiting for them to help us in order to have what we are paying for.


Please keep sharing the knowloedge waiting for Shopify.



New Member
2 0 0

Just bumping this, as I have just added gift cards as an option on my store in the UK.


Has anyone made any headway on this or had any advce on how to deal with the double VAT issue in the EU?