Fundamental Concepts & Definitions

What does the term “digital Giftcards” mean in a legal sense? ›

Digital Giftcards are electronic representations of claims such as codes or wallets and are legally equivalent to physical Giftcards if the claim structure is the same.

How is a Giftcard different from a discount code or a promotion code? ›

A Giftcard represents prepaid monetary value or a claim. A promo code represents a price reduction without monetary value and is treated differently for tax and accounting.

What is the difference between a single-purpose Giftcard and a multi-purpose Giftcard? ›

Single purpose Giftcard means place tax rate and service are fixed with tax at sale. Multi purpose Giftcard means they are not fixed with tax at redemption.

Which definitions apply across Europe for Giftcards and Giftcards? ›

EU law mainly defines VAT treatment through single purpose and multi purpose concepts while other terms remain national.

What is a value-based Giftcard and how does it work? ›

A value Giftcard represents a monetary amount usable for multiple services with partial and multiple redemptions possible.