Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 7/17/2012

European Union - Proposed VAT treatment of vouchers 

July 17:  The European Commission has proposed to establish a common system of value added tax (VAT) concerning sales of all types of vouchers, by amending the VAT Directive.

Currently, EU law does not include standard provisions as to how vouchers (including pre-paid telecom services, gift, and discount vouchers) are to be treated for tax purposes. The EC proposal would aim to provide uniform treatment of vouchers in the EU Member States. It is proposed that the new rules would be effective 1 January 2015.


Read a July 2012 report [PDF 128 KB] prepared by the KPMG member firm in Germany: MwSt. VAT Newsletter (July 2012)


Other topics addressed in the July 2012 report concern German court cases on:


  • Entrepreneur status when selling items on eBay
  • Entitlement to preparing a competition claim
  • No reduced rate of VAT for revenues of a charitable private limited company (GmbH) due to potential competition with other operators



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