taxes on gift cards
We need to be able to charge taxes on gift cards at the time of purchase. Otherwise our system charges taxes at the time of redemption which puts the taxes on us or we have to charge the client taxes which takes away from the purpose of the gift card and is not a smooth client experience.
2
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Amber
shared this idea
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Ben Stevens commented
We just add the tax to the service for a gift card if they want a service. Otherwise we just charge tax and use the gift card as a payment method.
For us taxes only apply at the time of service/realization of revenue. The gift card sale itself isn't taxable.