diff --git a/__tests__/users.ts b/__tests__/users.ts
index 0275e004a2..5301f03ffa 100644
--- a/__tests__/users.ts
+++ b/__tests__/users.ts
@@ -4059,6 +4059,27 @@ describe('mutation deleteUser', () => {
     expect(userOne).toEqual(null);
   });
 
+  it('should not call cancel subscription for gifted subscription', async () => {
+    loggedUser = '1';
+
+    await con.getRepository(User).update(
+      { id: '1' },
+      {
+        subscriptionFlags: updateSubscriptionFlags({
+          subscriptionId: '123',
+          provider: SubscriptionProvider.Paddle,
+          giftExpirationDate: new Date(Date.now() + 86400000), // 1 day from now
+        }),
+      },
+    );
+
+    await client.mutate(MUTATION);
+
+    expect(cancelSubscription).not.toHaveBeenCalled();
+    const userOne = await con.getRepository(User).findOneBy({ id: '1' });
+    expect(userOne).toEqual(null);
+  });
+
   describe('when user has a storekit subscription', () => {
     beforeEach(async () => {
       await saveFixtures(con, User, [
diff --git a/src/common/user.ts b/src/common/user.ts
index 36244770b2..ad07b63b24 100644
--- a/src/common/user.ts
+++ b/src/common/user.ts
@@ -47,13 +47,18 @@ export const deleteUser = async (
       }
 
       if (subscriptionFlags?.provider === SubscriptionProvider.Paddle) {
-        await cancelSubscription({
-          subscriptionId: subscriptionFlags.subscriptionId,
-        });
+        const isGifted = !!subscriptionFlags.giftExpirationDate;
+        // gifted subscription is a one-time payment hence not considered subscription in Paddle's terms
+        if (!isGifted) {
+          await cancelSubscription({
+            subscriptionId: subscriptionFlags.subscriptionId,
+          });
+        }
         logger.info(
           {
             provider: SubscriptionProvider.Paddle,
             userId,
+            isGifted,
             subscriptionId: subscriptionFlags.subscriptionId,
           },
           'Subscription cancelled user deletion',