UK propose rule changes for the VAT treatment of vouchers

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.

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