diff --git a/init-scripts/init-script.sql b/init-scripts/init-script.sql
index 117b5cd..460bd64 100644
--- a/init-scripts/init-script.sql
+++ b/init-scripts/init-script.sql
@@ -1548,17 +1548,20 @@ CREATE OR REPLACE FUNCTION enable_vat_registration(
 )
 RETURNS TABLE (
     payments_updated           INT,
+    till_sales_updated         INT,
     total_vat_calculated       NUMERIC(12,2),
     total_net_calculated       NUMERIC(12,2),
     registration_effective_date DATE,
     settings_updated           BOOLEAN
 ) AS $$
 DECLARE
-    updated_count INT;
+    pay_updated_count INT;
+    till_updated_count INT;
     total_vat     NUMERIC(12,2);
     total_net     NUMERIC(12,2);
     settings_ok   BOOLEAN := FALSE;
 BEGIN
+    -- Retrospectively apply VAT to completed payments
     UPDATE payments
     SET
         vat_rate        = enable_vat_registration.vat_rate,
@@ -1570,8 +1573,23 @@ BEGIN
       AND created_at::date >= registration_date
       AND vat_amount IS NULL;
 
-    GET DIAGNOSTICS updated_count = ROW_COUNT;
+    GET DIAGNOSTICS pay_updated_count = ROW_COUNT;
 
+    -- Retrospectively apply VAT to completed till sales (gift card purchases etc.)
+    UPDATE till_sales
+    SET
+        vat_rate          = enable_vat_registration.vat_rate,
+        vat_amount        = ROUND(total_amount - (total_amount / (1 + enable_vat_registration.vat_rate / 100)), 2),
+        net_amount        = ROUND(total_amount / (1 + enable_vat_registration.vat_rate / 100), 2),
+        is_vat_applicable = TRUE,
+        updated_at        = NOW()
+    WHERE status = 'completed'
+      AND created_at::date >= registration_date
+      AND vat_amount IS NULL;
+
+    GET DIAGNOSTICS till_updated_count = ROW_COUNT;
+
+    -- Aggregate totals
     SELECT
         COALESCE(SUM(p.vat_amount), 0),
         COALESCE(SUM(p.net_amount), 0)
@@ -1581,6 +1599,17 @@ BEGIN
       AND created_at::date >= registration_date
       AND vat_amount IS NOT NULL;
 
+    -- Also include till_sales in the aggregate totals
+    SELECT
+        total_vat + COALESCE(SUM(ts.vat_amount), 0),
+        total_net + COALESCE(SUM(ts.net_amount), 0)
+    INTO total_vat, total_net
+    FROM till_sales ts
+    WHERE status = 'completed'
+      AND created_at::date >= registration_date
+      AND vat_amount IS NOT NULL;
+
+    -- Update business_settings record
     UPDATE business_settings
     SET
         is_vat_registered       = TRUE,
@@ -1594,7 +1623,8 @@ BEGIN
     END IF;
 
     RETURN QUERY SELECT
-        updated_count,
+        pay_updated_count,
+        till_updated_count,
         total_vat,
         total_net,
         registration_date,
@@ -2038,7 +2068,11 @@ CREATE TABLE gift_cards (
     is_inventory BOOLEAN NOT NULL DEFAULT FALSE,
     expiry_date TIMESTAMPTZ,
     -- Rolling expiry: 24 months from last usage (redeem, topup, balance check)
-    last_used_at TIMESTAMPTZ NOT NULL DEFAULT NOW()
+    last_used_at TIMESTAMPTZ NOT NULL DEFAULT NOW(),
+    -- Voucher type at time of purchase ('SPV' or 'MPV'). Read at redemption to
+    -- determine whether VAT was already paid at sale (SPV) or must be applied
+    -- now (MPV). NULL if the card was created before this column was added.
+    voucher_type_at_purchase VARCHAR(3)
 );
 
 CREATE INDEX idx_gift_cards_last_used_at ON gift_cards(last_used_at)
@@ -2360,3 +2394,6 @@ CREATE TABLE IF NOT EXISTS refresh_tokens (
 
 CREATE INDEX IF NOT EXISTS idx_refresh_tokens_user_id ON refresh_tokens (user_id);
 CREATE INDEX IF NOT EXISTS idx_refresh_tokens_expires_at ON refresh_tokens (expires_at);
+
+-- Migration: add voucher_type_at_purchase to gift_cards (for SPV/MPV per-card tracking)
+ALTER TABLE gift_cards ADD COLUMN IF NOT EXISTS voucher_type_at_purchase VARCHAR(3);