Hi, I have a client who runs a hotel, they issue vouchers, should they be accounting for the VAT on sale of the voucher or when the voucher is redeemed? The voucher can be used for overnight stays/dinner. I am unsure would this qualify as a single purpose voucher or a multi purpose voucher in terms of VAT.
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From 1 January 2019 there are two types of voucher:
Single purpose voucher (SPV).
Multi-purpose voucher (MPV). 
A voucher is a MPV if the either underlying goods/services or the VAT rate applicable are unknown when the voucher is issued. MPVs can be used to buy many different goods and services that are liable to different rates of VAT and can have different places of supply.
VAT is only chargeable when a MPV is redeemed. The handing over of the goods/services in return for a MPV is a supply for VAT purposes. 
The taxable amount is the VAT-exclusive consideration paid for the voucher. 
A voucher is an SPV if the underlying goods/services and the VAT rate applicable are known when the voucher is issued. VAT is charged on the issue and on each subsequent transfer at the rate applicable to the underlying goods/services. 
If the SPV is sold for less than face value, the issuer pays VAT on the amount actually received. 
No VAT is charged when the SPV is redeemed, i.e., on the handover of the goods/services. However, if extra consideration is paid, the extra consideration is chargeable to VAT.
1 VATCA 2010 s 43A(1); Revenue Tax and Duty Manual (December 2018)
2 VATCA 2010 s 43A(2)
3 VATCA 2010 s 43A(3)
4 VATCA 2010 s 43A(4)
5 VATCA 2010 s 43A(5)
See blog post on this topic by Mairead Hennessy
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