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EU VAT on vouchers agreement


EU VAT on vouchers agreement

The EU has adopted an agreement on the VAT treatment of vouchers which will come into place across all member states by 1 January 2019 or sooner.

The new directive covers:

  • the definition of vouchers, including: retailer gift cards; price discount coupons; and pre-paid voice and data telephony cards.
  • the different treatments of single and multiple use vouchers, and the place of supply. It seeks to avoid double taxation where vouchers are used across countries with varying VAT rules – termed mismatches.
  • how to determine the taxable base of vouchers to calculate the VAT due.
  • It does not cover discount vouchers which allow for a price reduction, but carry no right to receive goods or services

All member states will transpose the new rules into their local VAT legislation by 31 December 2018

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.