Starting July 1st 2019, a new legislation regarding the charging of VAT on gift cards becomes effective.
According to the new VAT rules, the VAT should be charged when the sale of a gift card is made. This means that the purchase of a gift card henceforward will be juxtaposed with the purchase of a regular good. When the customer cashes a gift card, the included VAT will be deducted the VAT of the products the customer wishes to buy. Therefore, the use of a gift card can be compared with the return of a product where the price of the product and the included VAT becomes deducted in the new products the customer buys.
During the old VAT rules, the VAT wasn't calculated when buying a gift card. Instead, the VAT was calculated when the gift card was cashed. In other words, when a customer purchased a 100 DKK gift card, the VAT wouldn't be derived from the 100 DKK - the VAT was first calculated in the second, the customer cashed the gift card and "exchanged" it to a product.
With all-new rules come exceptions which is also the case with the new VAT rules for gift cards. You are expected the new VAT rules if you sell gift cards that can be cashed across national frontiers or gift cards that can be used to buy products with differentiated VAT such as stamps, insurances or newspapers. If so, you can keep on using the old VAT rules.
Here at Ka-ching, we want to make the life of our customers as easy as possible. Therefore, our gift card service takes into account both the old and the new VAT rules. Furthermore, our service ensures that the use of gift cards, whether you use the old or the new VAT rules, is registered correctly in accounting.
 |
Thomas Damgren, CSO |
With Ka-ching's solution, you can integrate Shopify with your point-of-sale system. With this solution, your products will always stay updated, whether you are selling from a physical store or an online shop. You get the best of both worlds, allowing you to sell without feeling restricted.
With the increasing demand for more advanced technologies in the retail industry, it's not surprising that cash register systems (POS systems) have become a popular solution for many businesses. POS systems can help automate the sales process and create a more efficient operation. In this blogpost, we will focus on Ka-ching's POS system and provide insight into its benefits.
Summer is over – and many of us are back working hard for our business again. We've spent the last month trying to get you better sales opportunities. We have done this by making integration between Zalando, aka Connected Retail, and Ka-ching POS. In that way, you can create more customers with a small effort. With the new integration, your Ka-ching POS is still fully updated in stock status when you sell an item through Connected Retail.