43A Vouchers – Multi-purpose and single-purpose, etc.

Summary

This section deals with rules on certain vouchers issued on or after 1 January 2019.

Details

(1) Subsection (1) sets out the meaning of the following:

• a ‘multi-purpose voucher’ is a voucher other than a single-purpose voucher;
• a ‘single-purpose voucher’ is a voucher where the place of supply of the goods or the services to which the voucher relates, and the tax due on those goods or services, are known at the time of issue of the voucher
• a ‘voucher’ means an instrument, whether in an electronic or physical format, where there is an obligation to accept it as consideration or part consideration for a supply of goods or services and where the goods or services to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instruments.

(2)(a) Subsection (2)(a) provides that in the case of a multi-purpose voucher which has been accepted as consideration or part consideration by a supplier for goods or services, it is the actual handing over of goods or services which constitutes a supply while the preceding transfers are disregarded.

(2)(b) Subsection (2)(b) provides that where additional services are supplied by a taxable person who issues or transfers a multi-purpose voucher, other than the person making the underlying supply, these additional services are taxable.

(3) Subsection (3) provides that the taxable amount in the case of a multi-purpose voucher is the consideration paid for the voucher or, in the absence of information on that consideration, the monetary value indicated on or within the multi-purpose voucher or in the related documentation, less the amount of tax relating to the goods or services supplied.

(4)(a) Subsection (4)(a) provides that each transfer of a single-purpose voucher made by a taxable person acting in his or her own name is regarded as a supply of goods or services to which the voucher relates and is subject to tax.

(4)(b) Subsection (4)(b) provides that where a single-purpose voucher is transferred by a taxable person acting in the name of another person, that transfer is regarded as a supply of goods or services made by that other person.

(4)(c) Subsection (4)(c) provides in the case of a single-purpose voucher where the supplier of the underlying goods or services is not the taxable person who issued the voucher in his or her own name, that the supplier is deemed to supply the issuer with those goods or services.

(4)(d) Subsection (4)(d) provides in the case of a single-purpose voucher that the actual handing over of goods or provision of services where the voucher is accepted as consideration or part consideration by the supplier is not subject to tax.

(5) Subsection (5) provides that the taxable amount in the case of a single-purpose voucher is the sum actually received by the supplier on the sale of the voucher.

(6) Subsection (6) provides that this section shall apply to a single-purpose voucher or a multi-purpose voucher issued on or after 1 January 2019.

Relevant Date: Finance Act 2020