Value Added Tax Act 1994 Schedule 10A paragraph 7A

Exclusion of single purpose vouchers

Paragraph 7A excludes single purpose face-value vouchers from the special VAT rules that normally apply to face-value vouchers, because the VAT treatment of such vouchers is already straightforward.

• A single purpose voucher is a face-value voucher that can only be redeemed for one type of goods or services, all subject to a single VAT rate.
• The special face-value voucher rules in paragraphs 2 to 4, 6 and 7 of Schedule 10A do not apply to these vouchers.
• This exclusion covers both the initial issue of the voucher and any subsequent supply of it.
• Because the VAT liability is known from the outset, the voucher is taxed in the normal way at the point of issue rather than under the special voucher provisions.