EU introduces directive on voucher VAT

27 July 2016

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:
http://www.consilium.europa.eu/en/press/press-releases/2016/06/27-agri-vat-rules/

 

LATEST NEWS

2025 SME Special Scheme introduces pan-EU €100,000...

To reduce the VAT compliance burden for small to medium-sized enterprises (SMEs) in the EU, many member states have implemented an 'SME Scheme', which exempts...

SEE MORE
VAT news
LATEST NEWS

Romania proposes to extend mandatory e-invoicing to...

Romania has announced plans to extend its electronic invoicing regime to business-to-consumer (B2C) transactions for both VAT-registered resident and...

SEE MORE
VAT news
LATEST NEWS

Senegal to introduce VAT on e-services for...

The Ministry of Finance has confirmed that it will introduce VAT at 18% on the sale of digital services by non-resident providers to local consumers from 1...

SEE MORE
VAT news

Gated Content

The following email providers are not accepted: gmail, hotmail, yahoo. Please use proper company email.