Voucher sales are advance payments – revenue arises on redemption, not at sale
Selling vouchers and gift cards does not constitute a delivery of goods or a service, but merely the collection of money as an advance against future performance. As a result, the funds received at the point of sale are treated as an advance payment, not taxable revenue. The taxable income arises only when the voucher is actually redeemed by the customer.
Comments
No comments yet
Comments
No comments yet — be the first to weigh in 👇
No comments yet. Be the first!