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Czech Republic: VAT and meal vouchers, discount vouchers

Czech Republic: VAT and meal vouchers

Tax legislation pending consideration in the Czech Republic includes measures for implementation of the “Vouchers Directive” (the directive concerning the determination of value added tax (VAT) on vouchers).

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Meal vouchers

One issue concerns what vouchers would fall within the category of vouchers under the new directive—specifically, would common meal vouchers be deemed to be vouchers for VAT purposes?

An amendment to the VAT law would define a voucher as a document, associated with the duty to accept it, as consideration for the delivery of goods or services. It would need to be evident from the voucher itself as to what goods or services would be delivered and by whom. If meal vouchers are determined to satisfy the definition of vouchers subject to VAT, this could affect a large number of employers, catering service providers, and distribution and retail networks.

Discount vouchers not affected

The explanatory report to the VAT legislation amendment specifies that the new rules would not apply to discount vouchers that authorise their holders to obtain a discount from the price of purchased goods or services, but not to receive specific goods or services in exchange for the voucher. The rules for discount vouchers are not clear, but the explanatory report provides examples of “discount vouchers” (for example, vouchers with a face value of CZK 100 acquired free of charge from advertising flyers and that may be used in purchasing goods from shops, or coupons authorising holders to acquire a second product, free of charge, when submitting the coupons at fast food outlets).


Read a March 2019 report prepared by the KPMG member firm in the Czech Republic

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