What is a gift voucher?
A gift voucher allows your customer to purchase a product or service at a later date. Usually, such a voucher has a fixed value and is free to spend within a certain range or at a specific shop. Think, for example, of a fashion voucher or a book voucher. You can issue gift vouchers yourself, sell them through an external party or accept them as a means of payment.
Is there VAT on a gift voucher?
That depends on the conditions of the voucher. If its place of supply and the VAT due are known at the time of issue, the voucher is single-purpose. Otherwise, it is multi-purpose. The name “gift voucher” alone does not determine the time of VAT charging.
VAT handling
For a single-purpose voucher, the VAT point occurs upon issuance; for a multi-purpose one, upon redemption. Also take into account your role as issuer, acceptor or merchant. The examples below concern your own vouchers which you accept yourself.
What is a voucher?
A voucher entitles the holder to goods or services without mandatory additional payment. It can exist digitally or on paper. Distinguish single-purpose and multi-purpose vouchers according to the conditions, not according to the issuer.
Single-purpose vouchers
For single-purpose vouchers, the VAT consequences at issuance are known.
Fictional example: You are selling a voucher for €27.25, which grants access exclusively to a cinema screening in the Netherlands, including 9% VAT. The VAT on the sale is €27.25 × 9/109 = €2.25. When the voucher is redeemed, you do not calculate VAT again on the same voucher amount.
Multi purpose vouchers
For multi-purpose vouchers, the VAT consequences upon issuance are not yet known.
Fictional example: A customer pays €50 for a voucher that can be spent on products with 9% or 21% VAT. No VAT is due at the time of sale. If the voucher is redeemed in full for a product with a VAT rate of 21%, the VAT included is €50 × 21/121 = €8.68. Keep the receipt on file as outstanding credit until the voucher is redeemed.
What is a savings stamp?
The individual stamp scheme concerns stamps that entitle the holder to money. A savings card for a product or service may, conversely, be a voucher.
VAT handling
First, assess what the stamps entitle you to. The terms of payment and redemption determine which arrangement you use.
Upon payment
If you use the face value of stamps as a means of payment for goods or services, you assess the VAT on that supply. The mere word “stamp” does not grant a deferral of VAT.
On redemption
Upon payout, the stamp benefit may, under certain conditions, lead to a VAT refund. For the calculation, use the official explanation regarding vouchers, stamps and gift tokens.
Overview of differences
| Instrument | What to look out for? |
|---|---|
| Single-purpose voucher | VAT implications known upon issuance. |
| Multi-purpose voucher | VAT implications only known upon redemption. |
| Stamps for cash | Payout and any stamp discount. |
| Voucher with mandatory additional payment | Own arrangement; record price paid and additional payment. |
| Other discount voucher | Assess conditions and actual remuneration. |
Free gift vouchers and VAT: what about it?
Free does not automatically mean without VAT consequences. For goods, the purchase or cost price and previous deduction may be relevant; the official explanation mentions €15 for items of low value. For free services, other consequences apply, including the potential restriction of input tax. Check these exceptions at the source above.
Processing in your administration
For each voucher, record: type, terms and conditions, issue date, price paid, redemption and remaining balance. Link the correct VAT timing to the entry. The fact that no VAT is charged when a multi-use voucher is issued is not the same as turnover under code 0%. Check that you do not record the same receipt twice as turnover.
Are you using accounting software? Set it up to match your vouchers. If you buy a voucher for a client, also read about corporate gifts.
