I bought a 25€ gift card to buy a game with and in the end the microsoft money wasnt an ...

You would have to try contacting support and speak to billing.
http://support.xbox.com/contact-us

In order to purchase 360 content with currency on your account, you'll have to make the purchase on a 360 console.

Yes I understand that it will add on to my existing microsoft credit. The question is that the gift cards you redeem through rewards have a 90 day expiry date where you have to spend that money within that time. The money I have in my account is through bought gift cards and as so has no expiry date to use the money by. I just want to know if I redeem gift cards through microsoft rewards, when I buy a game it will use the gift card money with the expiry date first and not the money i already have in my account. If that makes sense. Thanks.

If I'm not mistaken, gift cards are tax exempt (here in Canada anyways) as it's basically buying money that you're using later.

Yes, you will need to pay vat later. If that person uses that 25 gift card, they will then have to pay tax on whatever they bought.

So in other words, VAT is only the "sooner or later" question. Hence, it actually has nothing to do with Microsoft or Xbox. Be reasonable.

I put money on my xbox with a gift card and when I go to buy items for games it says I only have £0.09 I dont know why considering I put in a £25 gift card what do I do to fix????

Buy gift Cards on Microsoft Store then buy the game spending that money