28 June 2016 EU adopts Directive on VAT treatment of vouchers The Council of the European Union issued a press release on June 27, announcing that it has adopted a Directive aimed at clarifying and harmonizing the European Union rules on the value added tax (VAT) treatment of vouchers. The Directive sets out to reduce the risk of mismatches in national tax rules leading to double taxation, non-taxation or other undesired consequences. Narrower in scope than the European Commission's original 2012 proposal, the Directive defines single-purpose vouchers and multi-purpose vouchers and sets rules to determine the taxable value of transactions in both cases. A Tax Alert prepared by EY's Indirect Tax Services group, and attached below, provides additional details. Document ID: 2016-1126 |
