The default option for gift card is that it go without VAT to our billing app (via API), but in EU you should add VAT to gift cards too, also it works very interesting.
When you sell the gift card they add 0% VAT.
Also when the gift card is used for an order, the total order value was deducted with the gift card value and only for the remaining value will be showed on the invoice with the VAT (27%)… So like you do not pay VAT for the gift card…
This is very interesting works very bad in this way.
Hi Plazaworker,
Gift card is considered to be a payment method, there is no underlying product. To point a challenge: a store sells goods with reduced and full VAT rates, what would be the correct VAT rate for gift card?
So, as a payment method, VAT is not to be applied to gift cards at the time of sale.
We are always happy to answer tax and tech related questions at EAS Project. If you are looking for automation for cross-border sales, here is the leading solution there is: https://apps.shopify.com/eas-eu-compliance