# Accounting & VAT treatment of Gift Voucher



## Tweety (14 Jul 2011)

Hi,

Can anybody explain the correct way to treat the sale of Gift Vouchers by a shop? 

On Cash Received basis for VAT so obviously the cash comes in when voucher is sold. However, there is more than one vat rate applicable in the shop and correct rate cannot be determined until voucher is redeemed but no cash will be received at this point. What is the best way to record sales and redemption of vouchers?

I am using Sage 50 Accounts package - is there any easy way to set up facility to record these correctly?

Thanks,
Tweety


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## callybags (14 Jul 2011)

That's a tricky one.

How do you account for the different rates of VAT on your cash receipts at the moment?

I would suggest only accounting for the vouchers as they are received back by you in return for product. Treat them as cash received.


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## J.Ryan (14 Jul 2011)

I would create a vouchers issued "bank" account, and just treat them as a liability until such time as they are redeemed


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