The handling of salon vouchers by Treatwell POS has been adapted to the requirements of the EU Directive 2016/1065. It harmonises and changes the tax treatment of vouchers and has been in force since 01.01.2019 in all member states. If there is any doubt about this, please contact a tax adviser or lawyer, because Treatwell can not and must not provide tax advice.
Treatwell allows selling and redeeming salon vouchers that are not specified but can be used to pay for every service and product of a salon.
Note: Treatwell does neither give any tax advice nor monitor the correct usage by the user. Treatwell also does not provide any advisory support.
Before 01.01.2019 it was considered that not the sale but the redemption of such salon vouchers is subject to VAT. However, since 01.01.2019 - and thus also for salon vouchers issued since then - it is true that they are already subject to VAT at the time of sale if the future tax burden is already known then. This is the case if all products and services that can potentially be paid for with the voucher have the same VAT rate. Because this is the case for the majority of users, Treatwell POS treats sales of salon vouchers as revenue and therefor subject to VAT.
When redeeming vouchers Treatwell POS asks if the voucher was issued before or after 01/01/2019.
This is necessary because on the one such salon vouchers issued before 01/01/2019 continue to be subject to VAT when redeemed. On the other hand such salon vouchers issued after 01.01.2019 is no revenue and therefore not subject to VAT (since their sale had already been revenue and subject to VAT). So make sure that the issue date is chosen correctly during salon voucher redemption, so that Treatwell POS will capture VAT and revenue correctly. Since all receipts contain the issue date they may help you there.
Before 01.01.2019 it was considered that not the sale but the redemption of such salon vouchers is subject to VAT. However, since 01.01.2019 - and thus also for salon vouchers issued since then - it is true that they are already subject to VAT at the time of sale if the future tax burden is already known then.
But because this is not the case for the majority of users (as salons usually sell items with different VAT rates), Treatwell POS does not treat sales of salon vouchers as revenue and therefore not as subject to VAT.
Salon voucher sales are therefore excluded from taxable revenue and grouped in an own section in the POS end of day report. Treatwell POS automatically applies no VAT rate for salon vouchers sold during checkout.