The Swedish Ministry of Finance Publishes Memorandum Introducing VAT Rules On Vouchers
The Swedish Ministry of Finance has published on 1 March 2018 a memorandum introducing new VAT rules on vouchers.
15 April, 2018
This memorandum corresponds with the EU Council Directive 2016/1065 published on June 2016 which amends the Directive 2006/112/EC and requires Member States to apply new regulations on the VAT treatment of vouchers by 1 January 2019 at the latest.
The Council’s Directive aims to reduce the risk of tax avoidance and avoid inconsistencies by implementing a common approach for VAT rules on vouchers.
The new regulations only apply for vouchers that can be used for redemption against goods or services, hence excluding vouchers that only entitle to a discount. Also, the regulations shall not trigger any changes in the VAT treatment of transport tickets, admission tickets to cinemas and museums, postage stamps or similar.
Vouchers can be distinguished between single-purpose vouchers and multi-purpose vouchers. Single-purpose vouchers are considered vouchers where the place of supply of the good or services the voucher relates to, are known at the time of issue of the voucher. Multi-purpose vouchers are all vouchers which do not classify as single-purpose vouchers.
VAT rules on single-purpose vouchers
In case a taxable person issues a single-purpose voucher in his own name, “each transfer including on the issue of that voucher is regarded as being the supply of goods or services”, hence the issuer needs to account for VAT on the consideration received.
Where a taxable person issues a single-purpose voucher in the name of another person, that intermediate supplier would not be regarded as taking part in the underlying supply. Only if the issuer received a separate consideration, that should be taxable according to the normal VAT rules.
VAT rules on multi-purpose vouchers
The supplier should account for VAT based on the consideration paid for the multi-purpose voucher or, in case this information is unknown, on the monetary value indicated on the multi-purpose voucher itself less the amount of VAT relating to the goods or services supplied.
These changes are to be implemented by all EU Member States by 1 January 2019 at the latest.
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