Commentary

V7.445A New rules for VAT and vouchers

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.445A New rules for VAT and vouchers

Part V7 Tax planning | Commentary

V7.445A New rules for VAT and vouchers

The European Commission has finally amended Directive 2006/112/EC to introduce a common system across all member states for dealing with supplies of goods or services where payment is made by the use of a voucher. From 1 January 2019, the UK has adopted these new rules into UK VAT law.

In simple terms, there are now two types of voucher: single-purpose and multi-purpose. From a VAT accounting perspective, VAT will be due on the supply of a single-purpose voucher at the point where it is sold or subsequently transferred. Where the voucher is

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