UK VAT on Single-purpose vouchers / Multi-purpose vouchers


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May 6, 2020
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We sell experience packages (things such as sports events, hospitality packages, spa days, super car driving, hotel night stays). The purchaser is given an experience voucher which is redeemable with 12 months validity). The voucher can be exchanged for another one of our experience packages of the same value or less at a later date as long as it is done within the 12 months validity on the voucher given at the point of purchase.

Recently being VAT registered, we are trying to bring down our VAT bills by using different VAT Schemes.

We are looking at using the Tour Operators’ Margin Scheme (TOMS) for the sale of hotels in Europe which means we are paying VAT only on the profit margin (sale price minus purchase price) of the hotel nights.

Aside from this I am wondering if the other experience packages which we sell would be applicable as single or multi-purpose vouchers and whether this gives us any additional VAT relief on the sale of these items as the purchaser is given an experience voucher.

I couldn’t find much information online about the multi-purpose vouchers but I do understand the rules have changed recently.

I believe this could mean that you only pay VAT at the point the person redeems the voucher, and not at the point when the money is received from the customer.

I may be barking up the wrong tree if this is totally not applicable to us but I’d like to hear more and happy to provide more information if it helps.

Thanks for your help and I look forward to the advice anyone can offer on this.
 
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