Sean McGinness (Saffery Champness) examines the proposed changes and key issues for affected businesses.
HMRC published its consultation document on VAT and vouchers on 1 December 2017. This article examines the proposed changes and some of the issues that could arise for businesses involved with vouchers.
What is the reason for the change?
It has long been the view that the lack of EU wide definitions of what a voucher is and where and when it is taxed has led to the non-taxation or double taxation of certain cross-border voucher transactions. The EU has therefore laid down a set of rules in Council Directive 2016/1065/EC which amended Directive 2006/112/EC.
It is good news for retailers and voucher issuers that issue vouchers in multiple countries as the rules should be the same in each EU member state from 1 January 2019. HMRC has confirmed that...
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Sean McGinness (Saffery Champness) examines the proposed changes and key issues for affected businesses.
HMRC published its consultation document on VAT and vouchers on 1 December 2017. This article examines the proposed changes and some of the issues that could arise for businesses involved with vouchers.
What is the reason for the change?
It has long been the view that the lack of EU wide definitions of what a voucher is and where and when it is taxed has led to the non-taxation or double taxation of certain cross-border voucher transactions. The EU has therefore laid down a set of rules in Council Directive 2016/1065/EC which amended Directive 2006/112/EC.
It is good news for retailers and voucher issuers that issue vouchers in multiple countries as the rules should be the same in each EU member state from 1 January 2019. HMRC has confirmed that...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
