Value Added Tax Act 1994 Schedule 10A para 3

Treatment of credit vouchers

Schedule 10A paragraph 3 defines what a "credit voucher" is and sets out how the consideration paid for such a voucher is treated for VAT purposes.

• A credit voucher is a face-value voucher issued by someone who does not themselves supply the goods or services obtainable with the voucher, but who undertakes to reimburse (fully or partially) the supplier who does
• The amount paid to purchase a credit voucher is generally ignored for VAT purposes, unless the price paid exceeds the face value of the voucher — in which case only the excess is brought into account
• This disregard does not apply if any supplier from whom goods or services are obtained using the voucher fails to account for the VAT due on that supply to the voucher user
• The Treasury has the power to specify by order additional circumstances in which the disregard does not apply