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Gift Card VAT

Morning. When I sell a physical gift card, is VAT 20% or 0% for this sale?

Many Thanks

Alison

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Admin

Hi Alison, thanks for your post.

 

This is a really good question. To my knowledge sales tax is not charged when selling a gift card. Tax is only collected when items are purchased with the card. 

 

I don't have a physical gift card to test this with but I tested with an eGift card and no tax was applied to the sale. 

 

Some other sellers had a similar query here, they are US based but the same theory would apply. @Thj 

 

 

 

 

Breffni
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