Gift Cards and new EU VAT regulations

maeconcept
New Member
7 0 0

Dear Shopify,

 

This inacceptable that after 2 years, there is still no solution to this problem. 

Please escalate this problem higher up the ladder! 

 

Ignoring all your EU customer is just not ok. 

 

Kind regars,

Lena Onkelinx

 

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HenriH
Tourist
6 0 2

Apparently this still hasn't been fixed? Fortunately we have products with different VAT %s so if I understand correctly, it can be viewed as a multi-purpose voucher.

Another question though is what happens when the gift card expires? If we don't charge VAT on purchase but still receive the money but the customer doesn't redeem the gift card we still need to pay taxes for the money we received. I tried to look into this but found no clear answer on what happens on gift card expiration.

Sandra_N
Tourist
5 0 1

Shopify  can you please reply to me? Is this topic on the roadmap? Thanks!

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Bubblebobblw
New Member
2 0 0

Any thing more on this Shopify?? This is just ridiculous! 

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ESSuperCo
Shopify Partner
30 0 5

Hi All,

I'm not sure if this will help with the issue. But to clarify since the issue is possibly paying tax on Gift Card sale and the Product redeemed and as of the moment it is not possible to use Gift Card to remove the tax on the product redeemed is it okay to just discount the gift card value when they purchase it? 

For example: Customer purchase a gift card 100 they will only pay 78( 100 - 22% VAT). 

Once they use this Gift card and purchase a product worth 100 then the tax is applied to that purchase. 

Just throwing out suggestions here, hope this helps for now while waiting for Shopify resolve the issue. 

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PetraS
Excursionist
16 0 7
With the new VAT rules that went into effect July 1st of this year, I'm not sure if this would be a fix.

That being said we're over 16 months past the date of the initial changes going live and shopify clearly doesn't think small businesses in the EU are worth investing in their platform for.

Amazing shopify *golfclap*
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lolly2020
Excursionist
37 0 30

Has this been fixed? Any update