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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.


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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

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