30 July 2018
The UK tax authorities have published a proposal for a change in the Value Added Tax (VAT) treatment of vouchers. This will affect retailers with promotional or loyalty programs and if accepted the new legislation will be introduced from 1 January 2019.
The UK proposal follows the EU Voucher Directive which will take effect from 1 January 2019 and will harmonise the VAT treatment of vouchers across the EU. Our previous article from July 2016 gives further explanation of how this will work.