Hi @Teoalessi ,
That makes some more sense so I appreciate you explaining that. Customers will be charged VAT when redeeming a gift card to pay for products, as they’re paying the VAT on the products and the gift card is just a method of payment. However, no sales tax is charged when a gift card is purchased.
Can you just confirm the outcome you’re looking for here? Would it be for the customer to pay VAT on both the gift card and then the goods they are redeeming with the gift card, as it seems you will now be required to pay sales tax on both? Or would it be for gift cards to still no longer include VAT charges on the customers end, and for the amount they pay when redeeming the card to increase so you’re covered for the dual VAT charges you’ll be required to pay?
It’s a complex issue to get my head around, so I appreciate you detailing the situation.
Kind regards,
Victor | Shopify Social Care