Press Release: Commission proposes new VAT rules for vouchers

The European Commission proposed to update EU VAT rules to ensure the uniform tax treatment of all types of vouchers across all Member States.

Vouchers represent a market of more than € 52 billion per year in the European Union. Prepaid telecommunications account for almost 70% of the voucher market, followed by gift vouchers and discount vouchers.

However, differences in national VAT rules on vouchers lead to serious market inefficiencies. Instead of being able to really benefit from the Single Market, companies face problems of double taxation and difficulties in expanding their business across borders. The new rules seek to redress this situation.