Introduction Details of the Section
2.Sub-section (1) inserts a new paragraph 7A into Schedule 10A to disapply parts of that Schedule in the case of single purpose vouchers. Single purpose vouchers are defined as those that can only be redeemed for goods or services of one type which are subject to a single rate of VAT.
3.Sub-section (2) stipulates that the changes made by sub-section (1) will have effect from 10 May 2012.
4.Sub-sections (3) and (4) make transitional provision in relation to vouchers affected by the changes made by sub-section (1) that have been issued before the changes made by that sub-section came into force but are redeemed afterwards. In such cases, VAT is deemed to be due on redemption from the person accepting the voucher in return for the goods or services which it is used to obtain.