There are two types of vouchers: ‘single purpose vouchers’ and ‘multi purpose vouchers’.
Treatwell POS only supports ‘multi purpose vouchers’. These can be redeemed for any service or product that you offer without any restrictions. Whenever you sell such a voucher (e.g. one with a value of £/€50) it’s neither defined nor narrowed for which product or service or when the salon voucher will be redeemed.
For ‘multi purpose vouchers’, VAT is due on redemption not when it’s issued (sold). One of the benefits of this voucher type is that you only pay VAT when the voucher is used - and not upfront when it is sold.
For ‘single purpose vouchers’ (e.g. vouchers that are sold for a specific purpose, namely for one specific service like a haircut) VAT is payable at the point when being sold.
Treatwell POS always treats your salon vouchers as ‘multi purpose vouchers’ and not as ‘single purpose vouchers’. Salon voucher sales are therefore excluded from taxable revenue and grouped in an own section within the end of day report. Treatwell POS automatically applies 0% VAT rate for salon vouchers during checkout.
Note: Treatwell does neither give any tax advice nor monitor the correct usage by the user. Treatwell also does not provide any advisory support.