Understand the concept of vouchers in the sense of VAT

Definition of a voucher in terms of VAT

For an instrument to be considered a “voucher” according to article 256 ter of the French Tax Code (FTC), several conditions must be met. First, it must be purchased for a fee. Second, it must commit the issuer (or a third party) to accept it as full or partial payment for specific goods or services. Finally, these goods or services must be clearly identified on the voucher itself or in the associated documentation (Administrative Doctrine - BOI-TVA-CHAMP-10-10-40-50).

It is important to note that free vouchers are not affected by this regime and follow the tax rules for gifts (Administrative Doctrine - BOI-TVA-DED-30-30-50).

Instruments whose counterparty (goods or services) is not guaranteed or is subject to a hazard at the time of issue are also excluded. This is the case, for example, of certain user tokens issued during participatory financing for future goods or services that have not yet been determined (Administrative Doctrine - BOI-TVA-CHAMP-10-10-40-50).

Likewise, digital assets defined in article L. 54-10-1 of the Monetary and Financial Code (ComoFi), such as certain cryptocurrencies accepted as a medium of exchange, are not qualified as good.

Other instruments are not considered to be good:

• Electronic currencies.
• Meal vouchers, vacation vouchers and CESU, which are special payment vouchers (Administrative Doctrine - BOI-TVA-SECT-50-10-10).
• Discount vouchers that offer a discount but do not incorporate a right to receive goods/services (Administrative Doctrine - BOI-TVA-BASE-10-20-10).
• Postage stamps.

Travel packages sold by agencies on their behalf, even if they have the characteristics of vouchers, fall under the special margin regime of travel agencies (Administrative Doctrine - BOI-TVA-SECT-60).

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The different categories of vouchers

Article 256 ter of the FTC applies if the voucher specifies the goods/services concerned or the identity of the potential suppliers. There are two main categories: single-use vouchers and multi-use vouchers (Administrative doctrine - BOI-TVA-CHAMP-10-10-40-50).

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Single-use vouchers

A voucher is said to be “for single use” if, as soon as it is issued, the place of delivery of the goods or services, as well as the VAT due (base, rate, territoriality), are known.

Even if a voucher entitles you to several benefits of the same nature, it remains for single use if all the taxation methods are known at the time of issue. For example, a card for several show sessions with a specific location and VAT rate is a single use voucher (Administrative Doctrine - BOI-TVA-CHAMP-10-10-40-50).

Likewise, a voucher that allows you to acquire different goods or services, but for which the amount of tax and the location are the same and known at the time of issue, is a single use voucher. For example, a gift card valid for various goods subject to the same VAT rate in shops located in the same country (Administrative Doctrine - BOI-TVA-CHAMP-10-10-40-50).

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Multi-purpose vouchers

A voucher is “multi-purpose” if it is not a single-use voucher. This is the case when the place of delivery/service or the VAT due are not known at the time of issue. If a single taxation method is not established precisely, the voucher is qualified as a multi-purpose voucher (Administrative Doctrine - BOI-TVA-CHAMP-10-10-40-50).

For example, a gift box that can be used in several EU countries for various services (well-being, leisure) is a multi-purpose vouchers, because the nature, rate of the benefits, or their location are not determined at the time of issue (Administrative doctrine - BOI-TVA-CHAMP-10-10-40-50, referring to BOI-TVA-BASE-20-40).

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VAT regime applicable to voucher transactions

Single-use voucher transactions

Each transfer of a single use voucher for consideration by a taxable person is considered to be the supply of the goods or the provision of services to which the voucher relates (Administrative doctrine - BOI-TVA-CHAMP-10-10-40-50 and BOI-TVA-BASE-20-40). The generating event and the exigibility of VAT occur at each transfer in accordance with the rules applicable to the underlying transaction (Administrative Doctrine - BOI-TVA-BASE-20-40).

If a distributor buys a single use voucher and resells it, the sale by the issuer and the resale by the distributor are treated as the delivery/service itself. The distributor deducts VAT on their purchase. The physical delivery of goods/services in exchange for the single-user voucher is not a separate operation (Administrative Doctrine - BOI-TVA-CHAMP-10-10-40-50).

If the supplier of the goods/services is not the issuer of the single use voucher, he is deemed to have provided these goods/services to the issuer. VAT is due by the supplier on the refund received from the issuer, and the issuer can deduct this VAT (Administrative Doctrine - BOI-TVA-CHAMP-10-10-40-50).

Single use voucher not used during their validity do not give the right to a refund of the VAT collected by the issuer (Administrative Doctrine - BOI-TVA-CHAMP-10-10-40-50).

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Multi-use voucher transactions

BUM transfers before their actual use (physical delivery of goods or provision of services) are outside the scope of VAT. Taxation only occurs when the good is delivered or the service rendered in exchange for the multi-purpose vouchers, because that is when all the elements to settle VAT are known (Administrative Doctrine - BOI-TVA-CHAMP-10-10-40-50 and BOI-TVA-BASE-20-40).

The commission of the distributor of a multi-purpose vouchers is subject to VAT (Administrative Doctrine - BOI-TVA-CHAMP-10-10-40-50, referring to BOI-TVA-BASE-20-40).

The tax base for a multi-purpose voucher is the consideration paid for the voucher or, failing that, its monetary value indicated, minus VAT (Administrative Doctrine - BOI-TVA-BASE-20-40).

If the multi-purpose vouchers are not used before their expiration date, no VAT is due (Administrative Doctrine - BOI-TVA-CHAMP-10-10-40-50).

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Specific case of gift boxes (Multi-use voucher)

Gift boxes providing access to various goods/services (culture, leisure) whose VAT is not precisely known at the time of issue (territoriality, rate, tax base) are multi-purpose vouchers (Administrative Doctrine - BOI-TVA-BASE-20-40).

• Issuing company: The amounts collected for the boxes are exclusive of VAT. Management fees withheld from reimbursements to service providers are subject to VAT. Expired cheque amounts are not taxable (Administrative Policy - BOI-TVA-BASE-20-40).
• Providers/Suppliers: The delivery of goods/services in exchange for multi-purpose vouchers is subject to VAT. The due date varies (return of the voucher for the goods, receipt of the reimbursement for the services). The management fees charged by the issuer do not reduce their tax base but the VAT on these fees is deductible (Administrative Doctrine - BOI-TVA-BASE-20-40).
• Distributors: Sales of boxes by distributors acting in their own name are exclusive of VAT. The margin (purchase/resale price difference) is subject to VAT as a distribution service (Administrative doctrine - BOI-TVA-BASE-20-40).

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