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:
External link
HMRC: Changes to the VAT treatment of vouchers
