On 1 October 2019, an amendment to Act No. 222/2004 Coll. on Value Added Tax regarding the taxable performance of vouchers entered into force. The amendment applies to vouchers issued after 30 September 2019.
The change occurred on the date of the taxable transaction (DUZP).
In the case of a single-purpose voucher , the day of sale or delivery of the voucher to the customer is considered to be the DUZP. If there is a legal obligation, a tax document must be issued within 15 days with all the necessary details at this point. The actual use of the voucher (physical provision of a service or delivery of goods) is no longer considered a taxable transaction, so VAT will no longer be charged at this point .
The amendment to the law does not apply to so-called discount vouchers (e.g. 20% discount on a purchase of your choice or a voucher for any service worth €50). For these types of vouchers, nothing changes from a VAT perspective and it remains in force that the tax liability arises on the day of receipt of payment from the customer to the Zlavomat bank account . However, the DUZP is on the day of the actual provision of the service, but the tax base will be zero and will be offset against the received payment (advance payment).
However, the change in the law does not affect the Income Tax Act , therefore revenues and expenses continue to be recognized at the time the service is provided or the goods are delivered.