single-purpose and multi-purpose vouchers

Single Purpose vs. Multipurpose Vouchers

With the introduction of the EU Voucher Directive back in 2019, a clear distinction between single purpose (SPV) and multipurpose vouchers (MPV) was made. Both have different legal and sales tax consequences.

As stated in the Directive: ‘voucher’ means an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services and where the goods or services to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument.”

SPV refers to a voucher where the place of supply or service that the voucher refers to, as well as the value added tax rate, can already be determined at the moment of issuing a voucher. So, in this case, vouchers are sold with the VAT included in their price. This would be a voucher which can only be redeemed by a specific supplier for a particular good or service.

The VAT treatment is going to be different when it comes to multi-purpose vouchers.

All the vouchers that do not fulfill the requirements of single purpose voucher are considered to be multi-purpose vouchers. As simple as that. Vouchers which entitle the holder to receive services in different countries (with different service locations) are also multi-purpose vouchers. With multipurpose vouchers value added tax will be charged when the services or the goods to which the voucher is related are supplied. These are the ones that can be redeemed against goods and services with different VAT rates and sold by a variety of suppliers. 

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