[info127]

Hello,

Thank you for sending that. One of the issues we are seeing with this pertains to sales tax. In the US, gift cards are typically purchased tax-free. So if a customer buys a $100 gift card they pay $100. Then when the gift card is redeemed the customer pays the tax on the products that they actually purchase. The issue is that these gift cards are treated like coupons in Woocommerce and therefore decrease the price of the products and understate the tax we are supposed to collect.

Example: $100 product with a 6% sales tax should be $106 at checkout. If a $100 gift card is used woocommerce brings the price of the item to $0 and does not collect any tax. What should happen is that there should still be $6 in tax to be collected.

Do you have any suggestions for dealing with this issue? One potential solution is to charge tax on the gift card but then it can’t be used for non-taxable products as we will be collecting tax on products that we shouldn’t be.

[Author]

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