Value Added Tax Consolidation Act 2010 section 43

Vouchers, etc.

Section 43 sets out the VAT treatment of gift vouchers, coupons, tokens, stamps, and similar instruments, including rules for redemption, intermediary sales, and discounted vouchers.

• The sale of a voucher at or below its face value is generally not subject to VAT; the tax charge arises only when the voucher is redeemed for goods or services.
• Where a voucher is sold to a VAT-registered business for resale, VAT is chargeable on each sale in the distribution chain, and no further VAT arises on redemption.
• Revenue may make regulations to determine the taxable amount for vouchers supplied as things in action and for goods or services exchanged for vouchers.
• Where a voucher is sold at a discount, the taxable amount is the sum actually received by the supplier rather than the face value of the voucher.