The Tax Faculty has responded to the VAT and vouchers consultation document issued by HMRC on 1 December 2017. The response is available to download as ICAEWREP 24/18.
The purpose of the consultation was to give businesses the opportunity to assist in deciding how the new voucher rules can be written into UK law, drawing attention to any issues this will present and to see whether greater clarity is required in some areas.
I agree with the concerns over determining whether a voucher is single purpose or multi purpose. This is a confusing for even the existing UK VAT law. Take for example I tunes vouchers, which we buy and sell in the distribution chain. I believe these are single purpose as they are for one type of product - electronic services - all standard rated. However, Apple and some of the supply chain seem to treat these as multi-purpose, and other distributors as single purpose. Which should they be?