Gift Cards – Multi-Purpose Voucher (VAT Act Ch 5 § 40)
If you sell gift cards in your restaurant, this is the most important article in our accounting guide. Misunderstanding this rule leads to wrong VAT, wrong revenue recognition, and risks both tax audit findings and levied tax with interest. The good news: Vendion handles it automatically. But you need to understand why, so you can explain it to your accountant.
The legal basis
Swedish gift cards fall under the Swedish VAT Act (Mervärdesskattelagen, ML) Chapter 5 § 40:
"Supply of a multi-purpose voucher — The supply of a multi-purpose voucher is not considered a supply of goods or services. VAT shall be calculated at the time the goods or services are accessed."
In plain language: when you sell a gift card, you have not sold a good or a service. You have sold a promise that the customer can later receive goods or services to a corresponding value. VAT shall therefore be calculated when the guest redeems the card, not when it is sold.
Two types of voucher – know the difference
Swedish (and EU-harmonized) VAT law distinguishes between two types:
| Type | Swedish term | What it is | VAT |
|---|---|---|---|
| Single-purpose voucher | Enfunktionsvoucher | The card can only be exchanged for a specific good/service with known VAT rate (e.g., "this card = one coffee") | VAT paid at issuance |
| Multi-purpose voucher | Flerfunktionsvoucher | The card can be used for any good/service in the restaurant, with varying VAT rates (12% food, 25% alcohol) | VAT paid at redemption |
Why Vendion uses multi-purpose vouchers
A 500 SEK gift card in a restaurant can be redeemed against:
- Lunch (12% VAT) – a portion
- Beer (25% VAT) – another portion
- Dessert (12% VAT) – the remainder
Since the customer is free to choose what the money goes to, and which VAT rate therefore applies, it is a multi-purpose voucher. This applies to almost all gift cards in the restaurant industry.
Practical consequences
Because the gift card is a multi-purpose voucher under Ch 5 § 40:
- No VAT at issuance – no 2610/2620/2630 entries. Only bank and gift card liability.
- VAT at redemption – VAT is calculated on the actual goods/services the guest receives, at the VAT rate applicable for that item.
- The gift card is a liability, not revenue – it is booked as liability 2421 on the balance sheet until redeemed or expired.
- At expiry – if the card is not used within the validity period it becomes income (3960 Forfeited income), but still without VAT (it was never a sale).
For your accountant
If your accountant is unfamiliar with Ch 5 § 40 or the multi-purpose voucher rule, refer them to:
- Swedish VAT Act (1994:200) Ch 5 § 40–41
- Swedish Tax Agency position statement "Vouchers – VAT"
- EU Directive 2016/1065 (Voucher Directive) which is the basis for the Swedish regulation
Related articles
- Gift card accounting – issuance
- Gift card accounting – redemption
- Gift card expiry to account 3960
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