Given the short period during which the value added tax (VAT) rules on vouchers have been applied and the limited data available to carry out the assessment, the European Commission, in its report published on Tuesday 23 July, said it believes that any proposal to amend the current rules would be premature.
Applied from 1 January 2019, these rules aim to simplify, modernise and harmonise the VAT rules applicable to vouchers, particularly in order to “ensure certain and uniform treatment, to be consistent with the principles of a general tax on consumption exactly proportional to the price of goods and services, to avoid inconsistencies, distortion of competition, double or non-taxation and to reduce the risk of tax avoidance”. The Commission conducted its survey in the spring of 2023.
Results of the survey show that Member States have not had sufficient time to gather evidence, carry out audits and form a final judgement on the overall performance of the VAT rules on vouchers. However, insofar as information was available, Member States confirm that the common rules on vouchers have largely addressed the fragmentation and complexity of applying VAT to various business models, leading to simpler rules and a more uniform application across the EU. These rules achieve their objectives by ensuring more uniform requirements and simpler compliance. They are also considered mostly relevant.
To read the report: https://aeur.eu/f/d44 (Original version in French by Anne Damiani)