Value Added Tax Act 1994 Schedule 10B paragraph 3

VAT treatment of vouchers: general rule

Schedule 10B paragraph 3 establishes the general rule that every time a voucher is issued or transferred, it is treated as a supply of the relevant goods or services for VAT purposes.

• When a voucher is first issued, this counts as a supply of the relevant goods or services for VAT purposes.
• Any subsequent transfer of the voucher to another party is also treated as a supply of the relevant goods or services.
• The term "paragraph 3 supply" is used throughout Schedule 10B to refer to the deemed supply that arises each time a voucher is issued or transferred.
• The supply is treated as taking place at the point in time when the voucher is issued or transferred, not when the voucher is ultimately redeemed.