Will the issues pertaining to vouchers under the Recast VAT Directive be solved by the Voucher Proposal?

Abstract: Vouchers are widely used within the EU, however there are no common rules within the EU pertaining to the treatment of vouchers for VAT purposes. Each member state has its own interpretation and rules as to how to treat the sale or redemption of vouchers. As a consequence of the absence of clear common VAT rules with respect to vouchers, double- or non-taxation could occur in cross-border transactions. Despite the fact that there are several cases decided by the European Court of Justice on the treatment of vouchers, the treatment of vouchers is only partially clarified. In order to harmonise the VAT treatment of vouchers within the EU the European Commission issued a Voucher Proposal. The aim of this thesis is to explore the current issues pertaining to vouchers (SPV’s, MPV’s and discount vouchers) and whether these uncertainties will be solved by the Voucher Proposal. It can be concluded that part of the issues are solved by the Proposal, however unfortunately various issues remain, especially with respect to cross-border trade.