Accounting for vat on gift vouchers | AccountingWEB

Accounting for vat on gift vouchers


We are currrently selling gift vouchers to members of the public who are allowed to redeem the vouchers at our online retail site. We do not account for vat when the voucher is sold. Vat is accounted for when the goods are sold and the voucher has been redeemed. I understand that there have been changes in the vat treatment of vouchers but these do not apply to us. However, many customers require a vat invoice when they purchase the voucher as they are schools and want to give the voucher to children. Is it better to prepare a vat invoice to send to the school and to simply do a stock adjustment manually when the goods are redeemed at  a later date. Is there any thing wrong with this approach or is it better to stick with our current approach? Does anyone have any other sugggestions?

There are 2 comments. Login or register to view them.

VAT on gift vouchers

ruth.julian |

As the vouchers are being

shaun king |