HMRC has published a summary of responses to its consultation document issued in December 2017 on VAT and vouchers. The consultation focused on how an EU directive, providing for the VAT treatment of vouchers, should be transposed into UK law.
Even though on 23 June 2017, the EU referendum took place and the people of the United Kingdom voted to leave the European Union, until exit negotiations are concluded, the UK remains a full member of the European Union and all the rights and obligations of EU membership remain in force. This includes implementing the new EU VAT rules on vouchers.
The UK has had specific VAT legislation for vouchers for many years but it needs to be brought up to date. The new rules ensure the correct amount of VAT is charged on what the customer pays, irrespective of whether payment is with a voucher or other means of payment.
This document summarises the UK government’s response to the observations received. The government has not sought to respond to the small number of observations that were technically incorrect.
Source: HMRC
