Do you have a sole proprietorship and sell gift cards? If so, at the time of the sale you must first look at the VAT rate on the products and/or services you offer.
Gift card for something at one VAT rate?
Then you may immediately enter that gift card as a sale/income on which you charge the applicable VAT rate.
Later, when someone comes to redeem this voucher, you don’t have to record anything for your accounting purposes. Its sale was already included in your accounts.
Gift card for something at several VAT rates? 🎁
For example, you have a bookstore that sells books at 6% VAT on the one hand, but also CDs at 21% VAT.
When someone comes to buy a gift card, it is impossible to know whether this voucher will later be exchanged for something at 6% or 21% VAT.
In this case, when the voucher is issued, you don’t have to process anything for your sole proprietorship’s accounts yet. Only at the time the voucher is redeemed and you know with certainty whether the 6% or 21% VAT rate applies (or a combination) may you record the voucher as a sale. On that day, you either create a sales invoice for the gift card or register it through Dexxter’s daily receipts.
Tip:
Check out our blog article on the meaning of a mixed VAT taxpayer. 🧠
Are you not subject to VAT/exempted from VAT?
Then, of course, you don’t have to take the VAT rate into account. Convenient, because then any gift card you sell can just be recorded directly in your accounts at the time you sell.
Does someone later redeem this voucher for one of your products or services? Then you don’t have to do anything more for your sole proprietorship accounting at that point.
You record the income in your accounting at the time you sell the voucher. Redeeming it at a later time no longer impacts your figures.
