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.
United Kingdom
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 salon vouchers Treatwell POS will ask if the voucher was issued with or without VAT.
This is necessary because older salon vouchers, such issued before 01/01/2019 and therefore sold without VAT, continue to be subject to VAT when redeemed. So when redeeming those, choose 'sold without VAT' and when redeeming newer salon vouchers, those issued since 01/01/2019, choose 'sold with VAT'.
Voucher sale and voucher redemption is transactionally correct across all POS reports (e.g. transactions report, POS monthly, "POS yearly and transactions export). Sales reports being a Connect (not a POS) feature display both voucher value and the value of the items the voucher was redeemed for. This is because both are considered valuable business information: If e.g. Connect Sales reports were transactionally correct, then employees performing services paid with vouchers wouldn't receive any credit for that in Connect Sales reports.
Loyalty cards/ multiple appointments cards
Sell: Cards for several appointments should also be sold as vouchers: Make sure that you clearly name the voucher, e.g. including the service and the number of appointments and assign a unique number to the voucher (e.g. "5x men’s haircut #13").
Redeem: If the single treatment is cheaper with such cards, adjust the price during the checkout. Then select "salon voucher" payment and "sold without VAT". Afterwards, enter the voucher name and the appointment number (e.g. "5x men's haircut #13 1/5" for the 1st appointment). As voucher value enter the proportionate price for this session. Eventually, the value of all individual sessions will equal the card value.
Ireland
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.
Voucher sale and voucher redemption is transactionally correct across all POS reports (e.g. transactions report, POS monthly, "POS yearly and transactions export). Sales reports being a Connect (not a POS) feature display both voucher value and the value of the items the voucher was redeemed for. This is because both are considered valuable business information: If e.g. Connect Sales reports were transactionally correct, then employees selling vouchers wouldn't receive any credit for that in Connect Sales reports.
Loyalty cards/ multiple appointments cards
Sell: Since selling such cards is subject to VAT, always create and sell them as a product choosing the correct VAT rate: Make sure to clearly name the card, e.g. including the service and the number of appointments and assign a unique card number (e.g. "5x men’s haircut #13").
Redeem: Because the sale of the card has already been counted as revenue and paid for in full, reduce the price of a treatment of such a card to 0€ during checkout. In addition, we recommend that you record the redemption and the number of open appointments of each card in your documents (outside of Treatwell POS).