HMRC Consultation outcome VAT and Vouchers

Released 6 July 2018

HMRC have published responses to the consultation on proposed new rules for the VAT treatment of vouchers and gift cards.

On 1 December 2017 the government published a consultation document VAT and Vouchers about proposed new rules for the VAT treatment of vouchers and gift cards. The consultation focussed on how an EU directive, providing for the VAT treatment of vouchers, should be transposed into UK law. The Government has published draft legislation providing new, clear rules which separate vouchers with a single purpose (for example, a traditional book token) from the more complex gift vouchers and set out how and when VAT should be accounted for in each case. The new legislation is not concerned with the scope of VAT and whether VAT is due, but with the question of when VAT is due and - in the case of multi-purpose vouchers - the consideration upon which any VAT is payable. The new legislation will have effect for vouchers issued on or after 1 January 2019. Vouchers issued before 1 January 2019 will be subject to the existing rules.

View the Consultation outcome VAT and Vouchers.

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