Value Added Tax Consolidation Act 2010 section 43A

Vouchers - multi-purpose and single purpose, etc.

Section 43A sets out the VAT treatment of single-purpose vouchers and multi-purpose vouchers issued on or after 1 January 2019, including definitions, the taxing point for each type, and rules for discounted vouchers.

• A single-purpose voucher (SPV) is one where the place of supply and the VAT rate are known at issue; VAT is charged on each transfer at that rate, and no further VAT arises on redemption.
• A multi-purpose voucher (MPV) is any voucher that is not an SPV; transfers of an MPV are disregarded for VAT, and VAT is charged only when the MPV is redeemed for goods or services.
• The taxable amount for an MPV on redemption is the VAT-exclusive consideration actually paid for the voucher or, if that is not known, the monetary value stated on the voucher less the related VAT.
• Where an SPV is sold at a discount and the supplier later accepts it at face value from a customer who did not buy the voucher and does not know the discounted price, the taxable amount is the sum actually received on the sale.