The European Union’s New VAT Rules for Vouchers: The Emperor’s New Clothes?

For a long time, the European Commission has been working on a comprehensive solution to address all VAT issues relating to vouchers. These efforts initially resulted in a proposal that was published on 10 May 2012 and which should have been applied from 1 January 2015, but was eventually rejected by the Member States. A limited and revised version of that proposal was finally adopted by all Member States on 27 June 2016. In this article, the author offers a critical analysis of the new rules that will be applied regarding the VAT treatment of vouchers from 1 January 2019 onward.