The VAT implications of vouchers may, on the face of it, seem to be of little significance and straightforward. However, VAT on vouchers has been the subject of a significant amount of litigation in the United Kingdom and the European Union. New Zealand has amended its VAT legislation twice in this regard and the United Kingdom substantially amended its VAT rules on vouchers from January 2019. SARS issued two draft interpretation notes during 2012 on the subject but neither have been finalised. It is therefore somewhat surprising that there have been very few VAT disputes in South Africa in relation to vouchers.
Source CDH
