TEI Urges the Council of the European Union to Adopt Revised Rules Clearly Setting out the VAT Treatment for Vouchers

On December 18, 2015, TEI submitted a letter to the Council of the European Union urging it to adopt revised rules setting out the value-added tax treatment for vouchers. The European Commission adopted a proposal to amend Directive 2006/112/EC, which addresses the common system of VAT in the European Union, as to the treatment of vouchers, in May 2012.

The Council Working Party on Tax Questions has since discussed the VAT voucher dossier at length; however, the parties have not been able to reach a consensus sufficient to pass it to Ministers (via Coreper) for adoption by the Council. TEI maintains that the delay in finalizing this amendment to the VAT Directive is causing considerable concern in the business world, where vouchers are used extensively. TEI thus urged the Council to conclude its negotiations and adopt revised rules.

TEI's letter was prepared under the aegis of TEI's European Indirect Tax Committee, whose chair is Paula Regales. Pilar Mata, TEI Tax Counsel, coordinated the preparation of TEI's letter.

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