What is a single-purpose gift card?
The Danish VAT Act (momsloven) calls a gift card a voucher. It is a single-purpose voucher when the place of supply and the VAT on what the card can be used for are known as soon as the card is issued (momsloven § 73 b). For a Danish business this typically means that the card can only be used at your business in Denmark, and that everything it can be used for carries the same VAT — e.g. 25 %.
The VAT must be paid when the card is sold, not when it is redeemed (momsloven § 4 a), and the redemption itself triggers no new VAT. Skat’s own examples are a gift card for brunch at Danish cafés and a gift card for a hotel stay in Denmark.
What is a multi-purpose gift card?
All other gift cards are multi-purpose vouchers. That includes, for example, a card that can be used for both VAT-exempt and taxable services — a clinic offering VAT-exempt healthcare alongside massage with VAT — or a card that can be used in several countries.
Here the VAT is paid only when the card is used, and on what the customer actually receives (momsloven § 4 b). The sale of the card itself triggers no VAT.
Which type is your gift card
The question is whether the VAT is known when the card is issued. The table shows the typical cases:
| The card can be used for … | Type | VAT is paid |
|---|---|---|
| Only your own services in Denmark, all with the same VAT | Single purpose | When the card is sold |
| A specific stay, menu or treatment at your business in Denmark | Single purpose | When the card is sold |
| Both VAT-exempt and taxable services | Multi-purpose | When the card is redeemed |
| Services in several countries | Multi-purpose | When the card is redeemed |
What about gift cards that are never used?
If the card is single-purpose, the VAT was already paid at the sale, and nothing more happens for VAT when it expires. In the accounts the amount stands as a liability until both the validity and the following period for cash payout of the remaining balance have run out.
If the card is multi-purpose, the main rule is that VAT arises only on redemption. In one specific case about multi-purpose gift cards (SKM2022.401.LSR, 24 May 2022), however, the Danish National Tax Tribunal (Landsskatteretten) found that VAT was due on the unredeemed cards at the time the company took the amount to income after the validity period. The case concerned a gift card company with partner businesses, so take it up with your accountant if it may resemble your situation.
How are bonuses and free cards treated?
VAT is calculated on what the buyer actually pays. If you run «buy for 500, get 600», the basis is 500 kr., not the card’s value of 600 kr. In the export, what buyers have paid on your page is «Betalt værdi», and the total value of the cards is «Genereret værdi». The difference is «Intern værdi» and covers both bonuses and the cards you have issued yourself.
Cards you issue yourself have their own columns: «Solgt ved kassen» and «Erhverv (faktura)» are paid — just not through Kuvert — while «Gratis / comp» are given away. How a free card is treated for VAT depends on why it was given, and that is a question for your accountant. Kuvert keeps the three apart so the answer can be posted.
Where are the figures in Kuvert?
The monthly export — a CSV that Danish Excel opens directly — has one row per month. For a single-purpose gift card it is the sale that counts: «Netto omsætning» is what was sold on your page, less refunds, and «Solgt ved kassen» and «Erhverv (faktura)» are the cards you issued yourself against payment. For a multi-purpose gift card it is the use that counts: «Indløst» is what was deducted from the cards in the month.
Kuvert’s commission and the handling fee each have their own column. How the two are posted is in the section on fees under Gift cards in the accounts.