VAT Treatment of Vouchers - The Voucher Directive and its application to city cards and VAT Special Schemes – Do the rules provide an answer to their VAT consequences?
(2025) HARN60 20251Department of Business Law
- Abstract
- This thesis explores the Value Added Tax (VAT) treatment of vouchers within the
framework of the EU’s Voucher Directive, with a particular focus on its application
to discount vouchers, city cards, and VAT special schemes. The Voucher Directive
has been implemented to harmonize and clarify the VAT treatment of vouchers
across Member States including distinctions between single-purpose and multi
purpose vouchers. However, despite its objectives, several ambiguities and practical
shortcomings remain. This may lead to unintended consequences such as double
taxation or non-taxation.
This research critically examines the scope and limitations of the Voucher Directive,
emphasizing areas where the legal definitions and practical... (More) - This thesis explores the Value Added Tax (VAT) treatment of vouchers within the
framework of the EU’s Voucher Directive, with a particular focus on its application
to discount vouchers, city cards, and VAT special schemes. The Voucher Directive
has been implemented to harmonize and clarify the VAT treatment of vouchers
across Member States including distinctions between single-purpose and multi
purpose vouchers. However, despite its objectives, several ambiguities and practical
shortcomings remain. This may lead to unintended consequences such as double
taxation or non-taxation.
This research critically examines the scope and limitations of the Voucher Directive,
emphasizing areas where the legal definitions and practical implementations diverge.
Through analysis of legislative texts, working papers of the VAT committee, and
relevant case laws, this thesis assesses city cards which are often hybrid instruments
that offer access to various goods and services are treated under current VAT rules.
Additionally, it investigates the compatibility of VAT special schemes with the
Directive’s provisions.
In the conclusion, we see that Voucher Directive falls short of the aims it set out to
achieve such as avoiding inconsistencies, distortion of competition and preventing
double or non-taxation. By addressing these issues, this research contributes to a
better understanding of the Directive’s practical challenges and supports efforts
toward a more coherent and fiscally neutral VAT system for voucher transactions in
the European Union. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9193858
- author
- Dagliya, Saloni LU
- supervisor
-
- Mariya Senyk LU
- organization
- course
- HARN60 20251
- year
- 2025
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Voucher Directive, value added tax, vat, city cards, special schemes, vouchers, dsab destination stockholm
- language
- English
- id
- 9193858
- date added to LUP
- 2025-06-09 09:16:04
- date last changed
- 2025-06-09 09:16:04
@misc{9193858,
abstract = {{This thesis explores the Value Added Tax (VAT) treatment of vouchers within the
framework of the EU’s Voucher Directive, with a particular focus on its application
to discount vouchers, city cards, and VAT special schemes. The Voucher Directive
has been implemented to harmonize and clarify the VAT treatment of vouchers
across Member States including distinctions between single-purpose and multi
purpose vouchers. However, despite its objectives, several ambiguities and practical
shortcomings remain. This may lead to unintended consequences such as double
taxation or non-taxation.
This research critically examines the scope and limitations of the Voucher Directive,
emphasizing areas where the legal definitions and practical implementations diverge.
Through analysis of legislative texts, working papers of the VAT committee, and
relevant case laws, this thesis assesses city cards which are often hybrid instruments
that offer access to various goods and services are treated under current VAT rules.
Additionally, it investigates the compatibility of VAT special schemes with the
Directive’s provisions.
In the conclusion, we see that Voucher Directive falls short of the aims it set out to
achieve such as avoiding inconsistencies, distortion of competition and preventing
double or non-taxation. By addressing these issues, this research contributes to a
better understanding of the Directive’s practical challenges and supports efforts
toward a more coherent and fiscally neutral VAT system for voucher transactions in
the European Union.}},
author = {{Dagliya, Saloni}},
language = {{eng}},
note = {{Student Paper}},
title = {{VAT Treatment of Vouchers - The Voucher Directive and its application to city cards and VAT Special Schemes – Do the rules provide an answer to their VAT consequences?}},
year = {{2025}},
}