Do we need to charge VAT for Gift Cards/gift certificates

[JayBee]

We have a small ice cream shop. If we sell a 200 baht gift certificate do we need to charge vat? Then when they use the gift card to buy ice cream do we need to charge it again?

I thought we would only need to charge vat on the ice cream not the gift certificate. If we charge in both it makes selling the gift cards a bad deal for us, also what if customer uses a 200 baht gift card to buy only 120 baht ice cream and we need to give them back 80 baht change, that 80 bats already had vat paid on it so we are losing again.

Thanks!

Sent from my iPad using ThaiVisa app

[Sunbelt Asia]

Assuming your company is registered in the VAT system it will have the responsibility of imposing VAT in their products or services. You would have to include the VAT on to the 200 Baht voucher. Then it will not be a repeated VAT collection, For example, if your customer bought an ice cream for 200 Baht, the net amount would 214 Baht, the customer could pay using the 200 baht voucher but would have to pay the 14 baht in cash.

[sunbeltlegal][/sunbeltlegal]