Gift Certificates and VAT: What You Need to Know

• Gift certificates are subject to VAT at the standard rate.
• Gift certificates are considered goods for VAT purposes.
• The sale or free provision of gift certificates is subject to VAT.
• The VAT base is determined based on the contract price.
• The VAT base cannot be lower than the purchase price of the goods or services.
• The VAT base cannot be lower than the usual price for self-produced goods or services.
• The VAT base cannot be lower than the balance sheet (residual) value for fixed assets.
• The VAT base does not include penalties, interest, inflation costs, or damages.

Source: news.dtkt.ua

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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