VAT rules on vouchers will bring greater clarity and consistency

"Double taxation arising from mismatches can and does act as a barrier to commercial arrangements seeking to take advantage of Single Market opportunities. Conversely, unintentional non-taxation through mismatches can be exploited for abusive purposes. By clarifying and harmonising the EU rules on the VAT treatment of vouchers, this proposal will significantly ease the operation of loyalty schemes and gift vouchers as well. From a business perspective, the new Regulation will help to avoid market inefficiencies and scenarios of double taxation or non-taxation. From a consumer perspective, it will effectively remove a fiscal impediment to the operation of pan-European schemes that will greatly enhance the customers' ability to enjoy the services", highlighted Ildikó Gáll-Pelcz MEP.

The Hungarian MEP is convinced that a consistent legal framework on vouchers is indispensable to achieve the implementation of the 2015 change of place of supply rules in relation to business to consumer. Ildikó Gáll-Pelcz concluded: "Without such rules, any business that sells identical vouchers to private individuals from two different Member States could have to apply completely different VAT treatments to the two vouchers, even though the vouchers and their underlying supplies are the same. The fact that the Commission has issued a proposal for a harmonised VAT treatment of vouchers is widely welcomed because harmonised rules should bring greater clarity and consistency across the European Union."