Gift vouchers and VAT – uncovering the complexities

This article explores the topic of gift vouchers in light of Articles 8a and 8b of the Polish VAT Act.

This article covers the following issues:
• What are vouchers under the VAT Act?
• What types of vouchers exist?
• When should vouchers be settled?
• How should vouchers be settled?

What are vouchers under the VAT Act and how do they work?

Under the VAT Act, vouchers are understood as instruments that must be accepted as payment, in whole or in part. In everyday life, they usually take the form of gift cards or vouchers.

They are a common part of birthday and holiday gifts. One person goes to a store, pays a specific amount, and receives a gift card or other voucher in return.

The received voucher can be used by another person according to its intended purpose. Usually, the voucher has a specific amount noted either electronically or in writing. Sometimes, instead of an amount, a specific service and the place where it can be redeemed are indicated.

Types of vouchers

When issuing a voucher, it is important to determine which type of voucher is being issued.
There are two types of vouchers in circulation:

• SPV – Single-purpose vouchers
• MPV – Multi-purpose vouchers

SPV voucher

What is an SPV voucher?

SPV vouchers under the VAT Act are those for which the following are known at the time of issuance:
• The place of delivery or the provision of the service, and
• Amount of VAT due at the time of issuance.

Both elements must be fulfilled for the voucher to qualify as an SPV. If not, it is considered an MPV. In practice, SPV vouchers usually take the form of a specific service voucher.

Example 1: Roksana, impressed by a permanent makeup service at a beauty salon, decides to buy a voucher for the same service for her friend Wioletta, worth PLN 500, redeemable at the same salon. Wioletta then visits the salon and uses the voucher.
Example 2: Kamil purchases a season pass for January to an amusement park for PLN 100. The pass gives access to the pool, gym, and climbing wall at any time and in any combination. At the time of sale, it was known that all these services are taxed at the same VAT rate, and that the services are only provided at that specific location.

SPV voucher – VAT obligations

In the case of SPV vouchers, each transfer from issuance to the final consumer is subject to VAT, provided that the transfer is made by a VAT-taxable entity, not a private individual reselling the voucher.
The VAT obligation is not linked to the actual delivery of goods or provision of services covered by the voucher.
Moreover, if the SPV voucher is sold by a taxpayer acting on behalf of another taxpayer, the supply of goods or services is deemed to be made by the latter.

In most cases, the tax obligation arises at the moment the voucher is issued and handed over to the client.

Tax exemptions under Article 113 of the VAT Act may also apply (to be discussed in another article).

What if an SPV voucher is not redeemed?

The tax obligation arises upon issuance and transfer of the voucher, so non-redemption does not affect the VAT amount due.

MPV voucher

What is an MPV voucher?

The VAT Act provides a detailed definition only for SPV vouchers. MPV vouchers are defined negatively – that is, they are vouchers that do not meet the criteria of SPVs.
In practice, an MPV voucher is typically a store gift card that allows the consumer to visit the store and choose any products or services at any time.

With MPV vouchers, it is not possible to determine:
• The VAT amount due,
• The place of redemption.
Importantly, these conditions do not need to occur simultaneously.

Unlike SPV vouchers, the transfer of MPV vouchers is not subject to VAT.

Example:
Oliwia bought a PLN 500 voucher to a clothing store for her husband Grzegorz. The store’s products are taxed at different VAT rates. A month later, Grzegorz used the voucher to buy clothes and perfume.

MPV voucher – VAT obligations

The VAT obligation for MPV vouchers arises only when the goods are delivered or services provided in exchange for the voucher. This is because, at the time of issue, it is not known what goods or services will be selected, or what the VAT rate will be applied.

Example:
Grzegorz visits the store and chooses white chino trousers, a lacy Hawaiian blouse, and baby clothes worth PLN 459. At checkout, he pays using the voucher, and the cashier electronically deducts the amount. PLN 41 remains on the voucher. As a result, the seller must calculate VAT based on the selected products and the moment the voucher was used, as this is when the taxable event occurs.

What if an MPV voucher is only partially used?

Partial use of an MPV voucher raises questions even among tax authorities. However, based on the ruling of the Provincial Administrative Court[2], it should be assumed that the unused portion is not subject to VAT – thus, its retained value is not taxable.

How to declare sales of vouchers?

Once you know the date of the transfer (SPV) or the redemption (MPV), you must include the transaction in the appropriate monthly or quarterly VAT return, depending on your chosen reporting method, and pay the tax due.

For SPV vouchers, the entire voucher value is the tax base, and VAT is calculated accordingly. For partially redeemed MPV vouchers, only the redeemed portion is considered for tax purposes.

What else should you know?

• If various VAT rates apply, or it is impossible to determine a uniform rate (e.g., due to cross-border use), the MPV rules apply.
  • Issuing an SPV voucher redeemable only in Poland by an entity without a business establishment in Poland is still subject to VAT.
  • The actual supply of goods or provision of services in exchange for the voucher (as full or partial payment) is taxable.
  • Voucher sales must be reported in the JPK_V7 file with appropriate tags depending on the voucher type (B_SPV, B_SPV_DOSTAWA, B_MPV_PROWIZJA).

[1] Article 2(43) of the Act of 11 March 2004 on Value Added Tax (Journal of Laws 2023, item 1570, as amended).
[2] Judgment of the Provincial Administrative Court in Warsaw of 14 October 2022, III SA/Wa 801/22