GST Incorrectly Attracted to Free Gift Cards in Shopify Reports/Analytics

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Currently the way our store is we can have the following occur:

  1. A $110 gift card is created for FREE
  2. A $110 product is purchased with this gift card
  3. $10 is attributed to tax (gst) and $100 is attributed to net sales
  4. No money is added to the payout (clearly)

This seems quite wrong, can someone please assist?  We obviously don't want to be over paying/reporting on tax.  is there a workaround solution to this problem?


Thanks, Andrew

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