The EU Council has adopted a new directive which will amend the VAT treatment of vouchers with effect from 1 January 2019. The directive relates to two kinds of voucher and these are:
‘Single Purpose Voucher’ – This is a voucher that carries a value that can only be redeemed on a single purchase of either goods or services that are known before the voucher is sold. Given this, the VAT rate will be known prior to the voucher being redeemed. In the directive it states that the VAT treatment and reporting should be made at the point of the sale of the voucher.
‘Multi-Purpose Voucher’ – is a voucher that carries a value that can be redeemed against multiple purchases of either goods or services that are not known before the voucher is sold. Given this, VAT rates may vary. In the directive it states that the VAT treatment and reporting should be undertaken when the voucher is redeemed for goods or service, not when the voucher is sold.
All member states will be required to include these in their local VAT legislation by 31 December 2018.
For more information the full directive can be found here: