On 26 June 2016 an European VAT Directive (EU 2016/1065) was approved to adjust the VAT rules on “paid-for” vouchers which can be redeemed for goods and/or services. This Directive must be implemented in the Belgian VAT legislation as from 1 January 2019, and is applicable to “paid-for” vouchers issued after 31 December 2018.
Vouchers remain an important marketing instrument in Belgium also in the digital environment. When your business utilises vouchers in the market to promote and distribute products/services, these can potentially be impacted by the new VAT rules. Also intermediaries involved in the distribution process of vouchers will be highly impacted.
It is highly recommended to benchmark your vouchers (current and future offerings) and determine the impact of this new VAT regulation on your business.
Ask yourself the following questions …
- What type of vouchers is your business using or involved in and why?
- Where are the vouchers marketed and how?
- In what capacity is your business acting (issuer, redeemer, distributor, intermediary, supplier) and how is VAT accounted for on vouchers in the supply chain?
- Does your business manage risks and recover overpaid VAT if any?
… and we would be happy to discuss your findings and assist you on this matter!