VAT value coupons

We remember that Law No.60 was published in the Official Gazette (Part I) no. 296 of April 17, 2019, with effect from April 20, 2019.

The mentioned normative act amended the Tax Code, thus clarifying the treatment of VAT in the case of operations involving the use of value coupons.

It is important to underline that the newly introduced provisions in the fiscal legislation are applicable only to the coupons issued after the entry into force of the normative act, ie those issued starting with 20 April 2019. 

Law no.60 / 2019 brings the following clarification regarding the term “voucher” used in the national VAT legislation, namely it will be replaced by “value coupon“.

Therefore, in accordance with the updated legislation, value vouchers are defined as instruments that imply an obligation to be accepted as a partial or full price for deliveries of goods or services and which either indicate in their contents or in the related documentation the goods or the services to be delivered / rendered or the identity of potential suppliers / providers.

According to Law no.60, the value coupons are of two types:

  • Single use value coupons, and
  •  multiple use value coupons.
  1. Tax treatment – Single use value coupons:

Single use value coupons (vouchers) are those in which they are known at the time of issue:

  • place of delivery or place of supply, and
  • VAT due for coupon goods or services or coupon-related services

As an intermediary acts in the name and on behalf of another taxable person in connection with the sale of a single-use coupon, the delivery of the goods / services associated with the coupon will be made by the person who issued the coupon in his own name, by the intermediary. Therefore, the obligation to collect VAT falls on the person issuing the coupon.

It is important to note that at the time of using the single-use coupon there are two operations:

  • delivery of goods or services performed by the supplier of the goods / services for the coupon-covered part without VAT collection as the tax was collected at the time of the coupon sale;
    • delivery of goods or provision of services by the supplier of the goods / services to the vendor of the coupon for the part not covered by the coupon.

Basically, VAT is collected only for the value of the sale of goods / services exceeding the value of the coupon.

               2. Tratament fiscal – cupoane cu utilizare multipla:

Multiple-use value coupons (vouchers) are those where they are not known at the time of issue:

  • place of delivery or place of supply, and
  • VAT due for related goods or services.

It is important to note that the sale of the multiple-use coupon is not an operation in the scope of VAT, so there is no obligation to collect the VAT.

          If an intermediary acts in the name and on behalf of another taxable person in connection with the sale of a coupon, it carries out services falling within the scope of VAT and, as a consequence, collects VAT (eg distribution or promotion services coupons, etc.).

         When using the multiple-use coupon:

• there is a delivery of goods / services provided by the supplier of the goods / services to the owner of the coupon, and
• the taxable amount is the amount indicated on the VAT value coupon or, in the absence of this information, the amount paid for the coupon.