Arguments with tax officials are common when it comes to gift voucher vat. The business owner has the money, but hasn’t made a sale yet. They may even, never make the sale.
There has just been a conclusion:
- If you sell a voucher, and you only deal with one vat rate in your business, then you pay the vat when you sell the voucher!
- If you have multiple vat codes (e.g.a Restaurant, then when the voucher is redeemed, is when you pay the vat.)
- If the voucher is never redeemed, then the vat is never owing
It doesn’t actually address the point in Revenue yet, but the sale of the voucher is still income, just that there is no vat owing on it.
The VAT Ebrief in detail is attached to this post