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Readers’ forum: Retail export scheme

23 November 2021
Issue: 4818 / Categories: Forum & Feedback
Dealing with VAT on gift vouchers.

One of my clients sells up-market and very expensive glassware. She issues gift vouchers to her customers but has never accounted for VAT until the voucher is redeemed. I think this is incorrect and that the tax point for VAT purposes is when the money is first received.

However my client thinks this would be wrong: she has three retail stores – there are no online sales – one of which is in Belfast and she said that some sales from this store are for non-EU customers under the retail export scheme so would not have any VAT to declare. So how would she get the VAT back for these sales if she paid VAT when the vouchers are issued? I thought the retail export scheme had been abolished when we left the EU so this also sounds wrong.

Finally do we have an error...

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