When selling gift cards, it is important to distinguish between single-purpose and multi-purpose gift cards.
For single-purpose gift cards, income is recognized (and VAT is declared) at the time of the sale.
Multi-purpose gift cards, however, are recorded as prepayments.

Both situations can be handled in the program by creating itemsread more in these items for gift cards.

1. It is recommended to create a separate sales income accountread more about adding an account, in Estonian (e.g., 4210 Gift card sales). Ensure that the created account appears on line 1 of the VAT report and in the profit and loss statement (the example account is included in the default report settings, but you can adjust it if needed).
2. Create an item (Warehouses -> Items -> New item) and set the sales income account to the one you created (e.g., 4210). Make sure the item type is set to “Service item.”
3. When selling a gift card, select the created item on the invoice and enter the line amount without VAT.
4. When redeeming a gift card, first enter the goods/services the client is purchasing on the invoice. For the last line, add the item created for the gift card again, entering the amount as a negative value. This ensures the accounts and amounts are recorded correctly in the transaction.

1. It is recommended to create a separate account that is recorded in the balance sheet under client prepayments (22xx). Ensure the account is defined in the balance sheet settings or add it if necessary.
2. Create a new item, select the created account (22xx) as the sales income account, set the VAT type to “Not turnover” (if the company is VAT-registered) and set the item type to “Service item.”
3. When selling a gift card, select the created item on the invoice and enter the total amount.
4. When redeeming a gift card, first enter the goods and/or services the client is purchasing on the invoice. For the last line, add the item created for the gift card again, entering the amount as a negative value, the VAT type should remain “Not turnover.”
   The gift card amount will be deducted from the total amount due and from the client’s prepayment account. VAT is correctly calculated on the sold goods or services.

If you have any additional questions, please write to us at support@simplbooks.ee