English translation published by the Legislation and Legal Opinion Commission. The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.
This Article addresses two stages of a voucher transaction: sale or issue of the voucher, and the Supply of Goods or Services on redemption. It must be read with the voucher classification and tax-point rules in Article (15) of the Regulations.
Businesses issuing or accepting gift cards, vouchers or similar instruments.
Calling an instrument a voucher is not enough. Face value, Consideration, what may be redeemed and where it is supplied determine when VAT is due and on what amount.
Current text
Before determining the voucher treatment
- 1
Confirm the instrument meets the Law's definition of a voucher.
- 2
Compare the Consideration received on sale or issue with the face value.
- 3
Classify it as a specified or unspecified voucher under Article (15) of the Regulations.
- 4
Determine whether VAT arises on the voucher transaction or on redemption based on that classification.
Connected provisions
Official guides and tools
Do not decide from the card's label
A card redeemable for one known Service at a known place differs from a general card usable for Goods with different treatments. Article (15) must be applied before deciding the VAT point.
Questions to help you apply it
- Does the issue price exceed the face value?
- Are the Goods or Services, their VAT rate and place known at issue?
- Is VAT due on issue or redemption?