In the incert system, a VAT rate can be defined for all items (products, vouchers, tickets), or you can simply manage gross amounts. The decision whether VAT rates are managed within the incert system depends on your accounting department and the specific use of the system. The system offers several options to support your accounting and tax processes.

As a technical provider, incert is neither qualified nor authorized to make recommendations regarding how vouchers or other items should be taxed. We therefore strongly recommend clarifying this with your tax advisor.

Configuration options

1. Option "No VAT in incert": All items are managed with their gross value in the system. Taxation of items that require it takes place independently of the incert system. For vouchers with a specific service, taxation can, for example, be carried out based on the cut-off date evaluation.
2. Option "Multi-purpose vouchers with service recommendation": In the incert system, "multi-purpose vouchers" are sold and therefore only taxed upon redemption. A multi-purpose voucher is a voucher where the service to be provided in return is not yet determined at the time of sale. It must therefore be clearly communicated to the purchaser and voucher holder that the value of the voucher can be redeemed for any service and that the printed "package services" are merely a recommendation. This is not a specific setting, but rather a series of measures (see below).
3. Option "VAT in incert": VAT rates are defined in the item management of the incert system. Usually, this is one main VAT rate per item, allowing a prepayment taxation (see below) to be calculated and paid. The incert statistics show the tax portions of sales and redemptions. For tickets (if no invoice is issued upon redemption), individual tax rates can also be defined instead of a main VAT rate.
   1. No VAT shown on incert receipt: At the time of ordering, VAT is not displayed on the incert receipt. The calculation of the amounts to be paid for prepayment taxation is carried out via the incert statistics, without allowing the customer to deduct input tax. Invoicing with VAT shown takes place separately upon performance of the service.
   2. VAT shown on incert receipt: At the time of ordering, VAT is also shown on the incert receipt. For vouchers, however, this procedure is not common, as it may result in double VAT display/input tax deduction (again with invoicing upon redemption).
4. A combination of these options: For example, products and tickets can be managed with a VAT rate and show VAT on the receipt (3b), while vouchers are created as multi-purpose vouchers (2), or the tax for vouchers is managed in the background but not displayed on the receipt (3a).

Multi-purpose vouchers

"A multi-purpose voucher, on the other hand, is a voucher where the consideration received in return is not yet clearly defined." (WKO, 2023). Therefore, it must be clearly communicated to the customer (purchaser and voucher holder) that the voucher is not tied to a specific service. If, for marketing purposes, "packages" are still to be sold (often considered a more attractive gift compared to a classic value voucher), it must be made clear that the listed package services are merely a redemption recommendation. This may include the following measures:

• Explanation in the terms and conditions
• Textual note in the item description
• Textual note on the voucher
• Printed voucher value on every voucher
• Textual note on the purchase receipt

Non-binding examples of notes on vouchers:

• Example of a German hotel: This is a multi-purpose voucher with the above service recommendation. The amount can be used for all offers of our establishment. Cash payment is not possible. Please make a reservation before redeeming the voucher.
• Example of an Austrian restaurant: No cash redemption possible. Lost or stolen vouchers will not be replaced. Vouchers purchased at [...] can be redeemed in all areas of [...]. The general terms and conditions apply:
• Example of an Austrian thermal spa: Multi-purpose voucher – this voucher can be redeemed for any service of [...] for the stated value. The service shown on the voucher is an example of redemption based on the currently valid rate as a value reference.

As a technical provider, incert is neither qualified nor authorized to assess whether your vouchers are identifiable as multi-purpose vouchers. We can only provide non-binding examples based on other clients. Please always discuss the implementation with your tax advisor.

Prepayment taxation

In Austria, prepayment taxation is a common procedure for vouchers with a specific service. In this case, the tax for the voucher is paid at the time of sale (for simplicity, often using the main VAT rate of the voucher) and reversed upon redemption. At the time of redemption, the tax of the specific service provided is then shown and paid. It is important that the tax is paid upon voucher sale but not displayed, to avoid a double VAT display (again with invoicing upon redemption).