VAT new regulation for vouchers in the EU as from 2019
Since 1. January 2019 new value added tax regulations have been in force throughout the EU. We would like to inform you about the changes and adjustments resulting from them in this article.
We will use the tax rates in force in Germany in this article.
Difference between single-purpose and multi-purpose vouchers
To date, vouchers were categorised as
goods vouchers and
value vouchers . The law now differentiates between so-called
single-purpose vouchers and
multi-purpose vouchers.
The
single-purpose voucher is a voucher for which the place of service and also the tax due for the service are determined at the time the voucher is issued. A single-purpose voucher is characterised by the fact that at the time when the voucher is issued, all the information exists for VAT related assessment of the service associated with the voucher. In the case of single-purpose vouchers, taxation takes place at the time of voucher issuing, since all characteristics relevant to taxation are known.
A multi-purpose voucher is accordingly a voucher that is not a single-purpose voucher. When the voucher is issued, neither the place of service is specified, nor the tax due. Correspondingly, the applicable rate of tax is not yet determined. For this reason, taxation for these vouchers is not carried out until the time of voucher redemption.
Value voucher
Please note that previously issued vouchers do not automatically equate to the current multi-purpose voucher. Example for a previously issued voucher, which now corresponds to a single-purpose voucher:
Voucher in the amount of EUR XX, entitling to a selection from the full range of the voucher issuer, whereby the range only covers goods or services at one tax rate (only 7% or only 19%).
Two variants
You have two options for implementing the new regulation in e-guma.
Issue all vouchers as multi-purpose vouchers
To ensure that your vouchers are valid as multi-purpose vouchers, and that consequently the service is not taxed until the time of redemption, the following sentence can be added to the voucher texts of all service vouchers (e.g. brunch or overnight accommodation):
The voucher can also be redeemed for other services.
This addition means that at the time of issuing, the service and tax rate are not determined for voucher booking, rendering it a multi-purpose voucher.
This procedure is only possible if your range covers goods or services taxed at different rates (7% and 19%).
If your company had only sales taxed at 19% in its range, you could add items taxed at 7% to your range. The reverse could also be done (previous 7%, add 19%).
Booking
DATEV recommends the payables account for multi-purpose vouchers "Gift vouchers issued".
If possible we recommend that you issue your vouchers as multi-purpose vouchers.
Issue all vouchers as single-purpose vouchers
This variant takes effect if your goods and services range are managed with one tax rate only (7% or 19%).
Upon issuing, value vouchers are taxed at the same rate as your other goods or services.
Booking
When booking, we recommend the following DATEV procedure: Upon issuing, book the single-purpose voucher, just like the previous goods voucher, as a gross sum for
received and taxed advanced payments 19% (alternative: 7%) VAT (payables). VAT is then either automatically (automatic account or when using a corresponding tax code) or manually subtracted out, and rebooked to the corresponding VAT account. Only the net sum remains in the advance payment account.
When redeeming, a sales account with 19% or 7% is nevertheless used. The corresponding advance payment must be balanced out In a further booking. In this way, VAT for this sales revenue is also cancelled out again, since any tax levied upon it was already due when the voucher was issued. This also means that changes to the corresponding advance payment account should be considered when checking.
Disadvantages
- VAT must be paid at the time of issuing.
- If single-purpose vouchers are not redeemed, VAT taxation is inevitable. See section write off.
Write off
What is the procedure if vouchers are not redeemed? There is no specific regulation dealing with this. In the case of multi-purpose vouchers, it can be assumed that if they are not redeemed, taxation will not be carried out, since according to the legislative text, the service is not taxed until redemption. In contrast, when single-purpose vouchers are not redeemed, taxation still takes place, since the taxable event is evident in the issuing of the voucher.
Conclusion
Depending on the company, the new regulation will lead to changes in voucher booking. We would be pleased to help you find the right solution. Please note that we are not tax consultants. We recommend that you discuss the new VAT regulation and the changes resulting from it with your tax consultant.
