Gift Cards in a Webshop: VAT and Accounting
By CodexierPublished 5 min read
Gift cards are easy to switch on in Shopify or WooCommerce and surprisingly easy to get wrong in the books. Since the EU voucher rules were introduced in Swedish law in 2019, the VAT treatment depends on what the card can be used for, not on what you call it. This guide explains the two voucher types, when VAT is due, what Swedish consumer rules say about validity, and how to set up the platform and bookkeeping so the numbers match.
Single-purpose vs multi-purpose vouchers
| Aspect | Single-purpose voucher | Multi-purpose voucher |
|---|---|---|
| Definition | Place of supply and VAT rate known at sale | Everything else |
| Typical webshop example | Shop selling only goods at one VAT rate, only to Sweden | Shop with mixed VAT rates, or selling to several EU countries |
| VAT reported | When the voucher is sold | When it is redeemed for goods or services |
| At redemption | No new VAT, the sale is already taxed | VAT at the rate of what is bought |
When VAT is due
The test is simple to state and easy to miss in practice. If a shop sells books at the reduced rate and clothes at the standard rate, a gift card usable on both cannot have a known VAT rate at sale, so it is multi-purpose. The same applies if you ship to customers in other EU countries through OSS, because the place of supply depends on where the buyer lives. Our guide on EU VAT and OSS for webshops covers that side.
- Classify each gift card product you sell, not the shop as a whole. A card limited to one product category can be single-purpose even in a mixed shop.
- Partial redemptions follow the same logic: for a multi-purpose card, VAT is reported on the part used, at the rate of what was bought.
- Discount codes and promotional credits given away for free are not vouchers sold for payment, and are handled as price reductions.
- If the classification changes, for example when you add a product line at another VAT rate, review the gift card setup at the same time.
Validity periods and consumer rules
Swedish law does not set one fixed validity period for gift cards, but the terms must be reasonable. Konsumentverket and the National Board for Consumer Disputes have long treated validity shorter than one year as generally unreasonable. Make the terms visible before purchase and on the card itself.
- State validity clearly in the product page, checkout, confirmation email and on the card.
- Say whether the card can be used online, in store or both, and whether it can be used on sale items.
- Explain what happens with a remaining balance and whether cash is refunded.
- A gift card bought online is covered by the right of withdrawal like other distance purchases; see distance selling rules in Sweden.
Setting up gift cards in the platform
Shopify has built-in gift cards; WooCommerce needs an extension. In both, the most common mistake is letting the platform treat the gift card like an ordinary product with VAT, which is correct for single-purpose vouchers and wrong for multi-purpose ones.
- Decide the voucher type and set the gift card product's tax setting to match.
- Make sure a card used at checkout reduces the amount to pay, not the taxable price of the goods, for multi-purpose cards.
- Check how the platform exports gift card sales and redemptions to your accounting system; many integrations map them to a sales account by default.
- Set validity and balance display, and test a partial redemption and a return of an order paid with a gift card.
- Keep a report of outstanding balances; it is the figure your liability account should match at month end.
Bookkeeping entries
| Event | Multi-purpose voucher | Single-purpose voucher |
|---|---|---|
| Card sold | Debit bank or payment provider, credit gift card liability. No VAT. | Debit bank, credit liability for the net amount and output VAT. |
| Card redeemed | Debit liability, credit sales and output VAT at the goods' rate. | Debit liability, credit sales. No new VAT. |
| Card expires unused | Liability released to income; treatment of VAT per Skatteverket's current guidance. | Liability released to income; VAT already reported. |
Account numbers vary; many use an account in the 2420 range for customer prepayments. Agree the accounts with your accountant.
When you do not need help: if you sell a handful of gift cards around Christmas and your accountant books them manually, the platform's standard setup and a monthly check are enough. It is worth building something when gift cards are a real revenue line, when you sell across channels so a card bought online must work in the shop, or when the Fortnox integration books them wrongly every month. That is the kind of work our custom e-commerce features service covers; book a short call if you want a second opinion on your setup.
Frequently asked questions
Is a gift card in a Swedish webshop always a multi-purpose voucher?
No. If everything it can buy has the same VAT rate and the place of supply is known, it is single-purpose. Shops with mixed VAT rates or EU-wide sales usually end up with multi-purpose vouchers.
How long must a gift card be valid in Sweden?
There is no single legal period, but terms must be reasonable. Consumer authorities have generally treated less than one year as unreasonable, so at least one year is the safe choice.
What happens to the money if a gift card is never used?
It stays as a liability until the card expires, then it is released to income. For multi-purpose vouchers, check Skatteverket's current guidance on VAT for unredeemed cards with your accountant.
Can customers return a gift card they bought online?
The right of withdrawal applies to distance purchases, and a gift card is not excluded just because it is a gift card. Handle it like other returns within the withdrawal period.
Gift cards booked wrong every month?
In a free 15-minute call we look at your platform, your voucher type and how sales flow into your accounting, and tell you whether it is a settings fix or needs custom work.
Book a free 15-minute call