Gift Card VAT

[Thj]

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

Many Thanks

Alison

[Breffni]

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