Budget 2018: the chancellor has confirmed that the proposed changes to the VAT treatment of vouchers will go ahead as planned from 1 January 2019.

For vouchers issued on or after 1 January 2019:

  • New definitions, aligning with EU law, will apply for Single purpose vouchers and multi-purpose vouchers.
  • VAT is payable on single purpose vouchers at issue.
  • VAT is payable on multi-purpose vouchers at redemption. 

Useful links:

Budget 2018 live highlights

Budget 2018 summary

External link

HMRC: Changes to the VAT treatment of vouchers