On 8 April 2025, the Tax Department issued Circular 3/2025, clarifying the VAT treatment of vouchers bearing an expiration date that remain unredeemed.
According to the Circular, such vouchers are subject to the following VAT treatment:
A) Multi-Purpose Vouchers
As defined in Circular 235, VAT on multi-purpose vouchers is accounted for at the point of redemption. Therefore, if such vouchers are not redeemed by their expiration date, they are not regarded as linked to any supply of goods or services. As a result, no VAT is due in respect of these vouchers.
B) Single-Purpose Vouchers
Also defined under Circular 235, VAT on single-purpose vouchers is accounted for at the point of their issuance. In cases where these vouchers are not redeemed by their expiration date, no VAT adjustment is required for the VAT already accounted for at issuance.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
