VAT Treatment Vouchers Restaurant

[PaddyTax]

Hi Everyone,

I have read and read multiple articles online and still none the wiser as such.

1. A restaurant i work for used Pigsback vouchers and initially they used offer of buy €25 voucher with a spend value of €50. Initially i assumed and booked it accordingly as a €50 sales with VAT (to ensure VAT man got his full cut) and then applied discount of €25 to make the shortfall when the services where provided i.e. rung through till system.

However the more i read on MPV Multi Purpose Voucher it talks about the Face Value what its sold for, which would mean above is not correct, If someone could advise?

2. More recently they have now changed to a new offer of €25 for 2 mains and 2 sides but actual prices of these could when calculated vary from €40-€55 depending on items customer chooses, is it ok if i now understand that MPV is Face Value, to set a price using a till button that says €25 when processing these particular promotional items, so then VAT is correct, as opposed to adding them up and then adding discount which can vary per each single transaction etc i.e. is it likely that VAT man would be unhappy with how i propose in administering this?

I could ring Revenue but dont want to do that and flag them to identity of restaurant until i am at least 70% certain i know what im talking about

Any advice appreciated on both points

Thanks Everyone.

 

[dublin67]

I'd personally be surprised if you get through to anyone in the Revenue to talk to who knows anything about vouchers. Additionally unless it is in writing it isn't really worth anything (and then it may not be correct). Vat on vouchers is complicated and I'd suggest talking to a vat specialist on this topic. I've worked in tax for many years but I wouldn't have the vat expertise to answer your questions. There are a number of vat specialist advisory firms in the market, contact them and ask for a fee quote. You don't necessarily need a Top 10 practice to answer this question.