Gift Cards and new EU VAT regulations

5 0 2

HI all,


We want to add gift cards to our EU based e-commerce website.

According to the new EU VAT regulation our gift cards would fall in the Single Purpose Voucher (because at the moment of the sale we know it will be used only on our website and only for products that are subject to 22% VAT) and would therefore need to be taxed for VAT at the moment in which the card is sold.

In order to avoid paying taxes twice, when the card is sold and then again when the product is sold, we would have to find a way to deduct the value of the card from the taxable amount of the product purchase (as if it was a voucher) rather than consider it a method of payment.

Has anybody else had the same issue? How did you deal with it? Ideas/Suggestions?

Replies 57 (57)
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


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.

5 0 1

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

New Member
2 0 0

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

Shopify Partner
30 1 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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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*
39 0 30

Has this been fixed? Any update

39 0 30


Is there any update on this?

any work around without extra bookkeeping?