The company

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.

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.

Sorry I don't get it..... Gift cards may be considered as a "futures" in financial terms. So if you execute the right later, should you still need to pay for the VAT (subject to the countries that need to pay VAT) then?

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.

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.

Sorry I don't get it..... Gift cards may be considered as a "futures" in financial terms. So if you execute the right later, should you still need to pay for the VAT (subject to the countries that need to pay VAT) then?

Think of it this way...?

The tax COULD also go to the purchase cost to create your RNG 25 Alphanumeric code, the cost to recycle that used code after #X years, the mass production of the cards, the packaging and distribution of the product. Vendor stocking fees etc etc.

"The problem with closed minded people is that their mouths are always open. "

Oh yeah, you should fxxk the federal government then.

I know how this customer feels. What he means is that you Microsoft should have waived the VAT for the customers and paid for them to show that how great Microsoft is as a billion dollar market value company. I don't quite know the accounting system in US,
but if Microsoft can pay the VAT for the customers, then, why not charge the card for $27.3 at the very beginning, then claim that VAT will be waived??? Pulling wool over people's eyes, and it always work.

All customers in US pay tax that is the law of the land and has nothing to do with corporate rules or regulations.

You pay tax percentage on the declared price in US.