I have used Quickbooks Desktop Enterprise for a few years now and just conquered this problem!
When you sell the gift card, you are doing it correctly.
To redeem cards and still have tax count correctly:
1. Create a product: Go to Items/Services and choose "new". Then under the Type drop menu, choose "discount." Then simply name it gift card or gift certificate. Next, I left description and amount/% blank.
I left the tax code as "tax" . Under the drop menu for account (to link to) choose your "other current liability" account that you created for the gift cards. It's the account showing unused gift card amount total. Save.
2. Now, on an invoice that is paying with a gift card, (See attached pic for help)
a. fill in customer
b. First line: choose product(s) and let the selling price show. Make sure it says taxable on the far right end.
c. Next line: as a product choose gift card. Enter the amount of the card they are using. This will pay for the product totally or partially depending on their balance. (this line should show as nontaxable on the far right)
I enter any difference in payment with cash for example under receive payments.
d. Now, the invoice should show as paid and the tax amount is listed on the bottom showing it was collected. My tax reports therefore remain in order.
I hope this helps!!
