Overview
Following on from a request from Currys, we have implemented a change in our invoicing arrangements. From 7th May 2025, as part of the changes described in this notice, vouchers issued to your employees under the SmartTech UK programme will meet the definition of being a Single Purpose Voucher for the purpose of Value Added Tax (VAT). This is on the basis that:
- The Catalogue of products (both online and in-store) against which it can be redeemed will, going forward, be restricted only to products that are standard rated for purposes of VAT;
- The voucher is only capable of being redeemed within the UK; and
- The terms and conditions of the products clearly identify both of the above.
The issue of a single-purpose voucher, and its subsequent transfer represents a supply of the underlying goods or services and we are accordingly required to charge VAT in our invoices to you from the date of implementation.
By way of an example, if your employee requests a £120 SmartTech voucher, we would issue you with an invoice for £100 representing the value of the underlying goods + £20 VAT.
Will I be out of pocket?
Whilst we cannot provide you with tax advice, the subsequent transfer of the voucher to your employee should be reported in your Output Tax declaration and, subject to your partial exemption position, we would expect that you would be able to recover Input Tax accordingly. Our expectation is that this change should therefore be cost neutral to you.
What if I'm not VAT-registered?
In this case, you would pay the invoice inclusive of VAT and pass the full cost onto your employee.
HMRC Guidance
The following page on HMRC's website provides additional resource on this topic.
Questions?
Should you have further questions please raise these with your Reward Gateway | Edenred contact. Questions will be reviewed on a weekly basis and this article will be updated with all FAQs on an ongoing basis.
FAQs
Will this change impact our scheme in the Republic of Ireland?
No. At this time, there is no impact on the scheme we run in the Republic of Ireland.
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