Share with your friends

Czech Republic: Guidance concerning VAT treatment of vouchers

Czech Republic: VAT treatment of vouchers

The tax authority in the Czech Republic issued guidance clarifying the application of value added tax (VAT) on various types of vouchers.


Related content

The guidance aims to distinguish between (1) vouchers subject to new VAT regulations and (2) discount vouchers.

  • If a voucher is associated with the right to receive goods or services, then it is a voucher for the purposes of the VAT law.
  • If a voucher is not associated with the right to receive goods or services, it is not a voucher for purposes of the VAT law.

An example of a discount voucher, provided by the tax authority, is a CZK 100 voucher that can be used on a purchase exceeding CZK 500 and generally is considered to be a token of value.

Single-purpose vouchers

The guidance addresses “single-purpose vouchers.” According to the guidance, if single-purpose vouchers are not used within a period of three years of the end of the tax period in which the VAT payer could claim a VAT deduction, then the VAT deduction must be refunded—unless it is shown that the vouchers have been destroyed, lost, or stolen. The fact that a voucher has not been used does not affect the voucher issuer’s tax liability. The same also applies to transfers of single-purpose vouchers within the EU and in third countries.

Multi-purpose vouchers

For “multi-purpose vouchers,” the tax authority considered the method of determining the tax base. The price paid for a voucher represents the base; if this price cannot be determined, it is the nominal value of a multi-purpose voucher.

The tax authority also looked to the use of rounding differences, and gave a number of examples when payment is made by a meal voucher in the form of a multi-purpose voucher. If the customer pays with a meal voucher and the seller does not return cash, the difference is regarded as a “tip” that is not included in the tax base. Rounding differences on the payment by meal vouchers are not included in the tax base.

Read an August 2019 report prepared by the KPMG member firm in the Czech Republic

© 2021 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal

Stay up to date with what matters to you

Gain access to personalized content based on your interests by signing up today

Sign up today