The EU VAT Treatment of Vouchers (FM nr. 157) 2019/2.7:2.7 Conclusion

The EU VAT Treatment of Vouchers (FM nr. 157) 2019/2.7

2.7 Conclusion

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In this research, I examine the EU VAT treatment of vouchers in the context of promotional activities. I will use positive law as a basis for this research, in order to establish how promotional activities are treated under the existing EU VAT rules (positive law). I will also establish whether this VAT treatment of promotional activities and transactions involving vouchers is in line with some general principles underlying the EU VAT system and the characteristics of the EU VAT system.

For this purpose, I will use the following two tests for this research:

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economic reality, as a manifestation of the principle of neutrality, and

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the characteristics of the EU VAT, and in particular the purpose of EU VAT that requires taxation of (expenditure for) private consumption.1

I will use these tests to establish whether the application of positive law is in line with appropriate or desired law, where I base the latter on the principles and characteristics mentioned. If the VAT treatment of the relevant transaction is not in line with appropriate or desired law, I will suggest a VAT treatment of these transactions that is based on these principles and characteristics.

These two main tests, that constitute the analytical framework of this research, coincide with what I described in Section 1.1 as ‘the tension between the right to deduct VAT on business related costs and the need to tax consumption’.

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