Station Road, Sidcup
Close

How can we help?

Please fill in this form and we'll get back to you as soon as possible.

Please enter your name
Please enter your email address
Please enter your telephone number
Please enter a question
Please let us know how you heard about us
Please enter the verification code

We’ll only use this information to handle your enquiry and we won’t share it with any third parties. For more details see our Privacy Policy

All Change for VAT on Vouchers

If your business issues vouchers, you should be aware that the VAT regime will change significantly on 1 January 2019.

From that time, the VAT treatment of a voucher will depend on whether it is a 'single purpose' voucher or a 'multi-purpose' voucher.

A single purpose voucher, as the name implies, can only be used for one thing. In this case, the VAT treatment follows that of the supply for which the voucher can be used. For example, if a voucher can only be used for a standard-rated supply (e.g. a restaurant meal), a charge at the standard rate of VAT is triggered as soon as the voucher is supplied.

A multi-purpose voucher is one that can be used for items that carry different rates of VAT. In this case, the supply of the voucher does not constitute a VATable supply. Instead, the VAT is determined at the time of redemption.

HM Revenue and Customs will shortly be producing guidance on the operation of the new scheme as there are complexities, for example when vouchers are also tickets and where they also give discounts.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.