In Sweden, the sale of gift cards is subject to VAT. Companies must charge VAT at the time of purchase based on the applicable rate for the goods or services the gift card can be used for. When the gift card is redeemed, VAT is charged based on the applicable rate for the specific items or services being purchased. Accurate record-keeping is important for VAT reporting and compliance. Consulting with a tax professional or the Swedish Tax Agency is recommended to ensure proper handling of VAT considerations for gift cards.