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