Taxes for generic gift vouchers

If you sell generic gift vouchers, you can set which taxes apply to them.

The default setting is to charge NO taxes for the sale of money/generic vouchers, as m
ost state sales taxes do not apply to the purchase of a gift card. The transaction is viewed as exchange of cash for cash equivalent with no additional value or service rendered. See for example this article for US businesses: http://www.us.kpmg.com/microsite/taxnewsflash/2011/Feb/Gift_Cards.pdf .


However, purchases paid for with gift cards may be subject to tax. When customers redeem a money/generic voucher and make a booking, Bookeo will apply taxes to your services according to your settings. The money/generic gift voucher amount will be applied as discount to the gross (tax inclusive) price. 

If in doubt, please ask your accountant or Tax Adviser.