- Should I add a tax rate to a new gift card product?
- Do gift cards need tax added?
- How does tax work for gift cards?
When you create a new gift card product in Venue Manager, ROLLER recommends that you add a 0% tax rate. This is because when guests use the gift card to make a purchase, tax will be applied at the time of purchase. This avoids the scenario where tax is applied twice (once when a guest buys the gift card and again when the gift card is used).
First, create a new 0% tax rate for gift cards.
- From Venue Manager, go to Settings > Account > Tax & fees.
- Select Unlock to make changes in the top right.
- Select Add tax and make it 0%.
- You can also choose to show or hide the tax line item on receipts and invoices by selecting or deselecting the Hide tax labels on receipts and invoice option. This is a global setting.
- Select Save.
Once you've created a 0% gift card tax rate, add it to your gift card products.
- From Venue Manager, go to Products > Create product.
- Select Gift card.
- Fill in the relevant information, then when you get to Create gift card value options, select the options menu (3 dots).
- Then select Tax override and choose your 0% tax rate from the drop-down.
- Finish creating your gift card product and select Save.