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…

Hi @Victor_5 , yes, you are wrong. It seems your are interpreting the regulation in “your way”, but it’s not the real one. If all the EU merchants start selling gift cards (because your feedback confirms the Shopify gift card are OK for the EU law), will Shopify take care of any kind of fine we a…

Hi @Giacomo143 & @Stefan_VR , Thank you to both of you for providing your feedback on this issue and for the detail you’ve given. I have gone ahead and communicated your comments onto the relevant internal teams for their consideration. I will be sure to update this thread in future once I hear mor…

@Victor_5 Is there an update on this matter?

@Victor_5 Same question here. I got offered the Gift Card possibility today (because Shopify wants to help their shop owners, considering COVID-19..) But tell me.. How can there still be no solution for this?! This problem has been there for all EU shop owners for more than a year now..

Same here @Jochem73 . A lot of my customers are asking to buy gift cards right now, so they can help my company out with the coronavirus and its impact on smaller businesses. Currently I’m missing out on a lot of sales because Shopify is too lazy to actually put in the effort to be compliant with …

Hi @PetraS & @Jochem73 , I passed on the feedback given here by different merchants to our internal team reviewing this measure, as per my last post , but do not have an update to provide at this time. It would seem that @Stefan_VR has found some luck with the Rise: Gift Cards & Loyalty app so I wou…

Dear Victor, thank you for passing on the feedback.. But since this problem has never been adressed up until now, I don’t expect it to be adressed in the near future. And the app you’re referring to is a minimal monthly charge of $19.99.. So thank you Shopify for helping me out with your temporari…

@Victor_5 as @Jochem73 states, that app has a cost of almost $20,- for a feature shopify is pretending to be offering to all merchants for free during the Coronavirus outbreak. Not exactly a fair thing to make all EU sellers use an expensive app for 1 simple feature that is actually mandatory by law…

@Victor_5 I’ve also checked the Rise app, it does allow for VAT (tax) to be charged but it WILL also charge tax when the client redeems the gift card. Which means taxes are charged twice over the same sum. In other words: Rise does nothing to solve the issue.

How to handle VAT on gift cards under new EU regulations?

Accounting & Taxes

Stefan_VR March 21, 2020, 8:32pm 24

I agree this should be included but I’ve been using Rise: gift card & loyalty app and it ticks all the Tax boxes and is just a nicer delivery system overall, give it a go.

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How to handle VAT on gift cards under new EU regulations?

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