Who is this for?
Business that issue vouchers to customers which they can exchange for goods or services and are VAT registered.
When does it start?
1 January 2019
From 1 January 2019 vouchers will fall into tow categories:
- Single purpose
VAT will be triggered depending on what the voucher entitles your customer to:
- Single purpose – VAT will be triggered when you supply the voucher
- Multi-purpose – VAT will be triggered when the customer redeems the voucher
The new rules do not apply to discount vouchers.
Single purpose vouchers
Where the precise nature of the supply is know at the time the voucher is issued. For example a beauty salon sells a customer a voucher which can only be used in exchange for a hair cut.
For more information read HMRC guidance
We offer VAT returns from as little as £60 per quarter, why not get in touch for a no obligation quote.