From the 1 January 2019 the way that gift vouchers are treated for VAT purposes has changed.
In the past, the VAT due to HM Revenue and Customs on the voucher sale was declared once the voucher was redeemed for the goods or service, this has now changed and output VAT should be declared on the VAT Return at the point of the voucher sale, rather than the point of redemption. This does not apply for any vouchers purchased before 1 January 2019. This change will not affect discount vouchers.
This change is due to an EU directive, which until we have completed Brexit negotiations, remains in force.
If your business sells gift vouchers and you are not sure on how this will affect you, then please get in touch: 01228 711888