News 12/2017

Gift vouchers from the value added tax and electronic records of sales (EET) perspective

As we informed you in our News No. 9/2017, the VAT Act provisions governing the taxation of gift vouchers were amended with effect from 1 July 2017. In July 2017 the Financial Administration issued information upon the particulars of this issue. Electronic records of sales (EET) methodology is based, to a certain extent, on that of VAT. Thus in light of the new information it is necessary to be careful as regards both the VAT and EET arrangements for gift vouchers.

VAT and the General Financial Directorate’s information

The new regulation specifies the rules for the determination of the moment when a VAT liability arises due to the acceptance of payment before the supply takes place. This applies only if the following facts are already known when the payment is accepted:

  • goods or service to be supplied
  • VAT rate
  • place of supply.

If the above facts are not known at the moment a gift voucher is sold, the payment is not subject to VAT: VAT is to be paid when the voucher is actually used. Only at this moment is it obvious for which goods or services the voucher is used and which VAT rate should be applied.

In particular, the General Financial Directorate’s information was aimed at dealing with interpretation problems regarding the definition of goods or services that may be purchased with a voucher. The General Finance Directorate’s information includes model situations indicating, for example, that in the case of the sale of a voucher for goods or services available in a shop where only goods and services subject to the same VAT rate are sold, the output VAT should be paid at the moment the payment for such a voucher is accepted.


The EET methodology regarding gift vouchers is based on the perspective of the VAT Act, distinguishing between the recording of one-purpose and multi-purpose vouchers.

If at the moment of purchase of a voucher the above attributes which are crucial for VAT liability are sufficiently known, the payments for such vouchers are registered only once in the EET system – as early as when the voucher is purchased (or a card is charged/topped up). The use of a voucher is not recorded in the EET system. In such a case, electronic records of sales fully reflect the procedure from a VAT point of view.

When not all the above facts are known at the moment a voucher is purchased, these are multi-purpose vouchers that should be recorded twice in the EET system. Both the purchase of a voucher and the use of the voucher to obtain specific goods or services are recorded. These transactions are not matched or linked in the EET system. Unlike VAT, the purchase of a voucher for a supply that is not sufficiently specified in advance shall also be recorded in the EET system.

Since the Financial Administration has reviewed its previously declared position on certain gift vouchers, we recommend that you pay particular attention in making your VAT and EET arrangements for gift vouchers. If you wish, we are ready to assist you in this matter.