VAT on gift cards in the Netherlands: single-purpose or multi-purpose voucher
In the Netherlands, a gift card is a single-purpose voucher if the VAT rate is already known when the card is issued. You then pay the VAT when you sell the card. If the card can be spent on goods or services with different VAT rates, it is a multi-purpose voucher and the VAT on gift cards is due only when they are redeemed.
At a glance
- The one test: is the VAT rate for what the customer will buy known at issue?
- Known, one rate: single-purpose (EDI in Dutch bookkeeping). VAT at the sale, nothing more at redemption.
- Not known, several rates: multi-purpose (MDI). No VAT at the sale, VAT at redemption on what the customer spends.
- Unsure: treat the card as multi-purpose and agree that with your accountant.
- Unused cards: VAT already paid on a single-purpose card is not refunded automatically.
Single-purpose or multi-purpose: what do the terms mean?
The Dutch tax authority speaks of vouchers for single use and for multiple use (Belastingdienst, in Dutch). Dutch accountants shorten this to EDI (enkelvoudig doel instrument) and MDI (meervoudig doel instrument). EU law uses single-purpose voucher and multi-purpose voucher. All three pairs describe the same split.
The split is about timing. On a single-purpose voucher the VAT consequences are known when the card is issued, so the sale is the taxable moment. On a multi-purpose voucher they are not, so the taxable moment is the redemption. A Gifty card can only be spent at your own business, so for you the question comes down to one thing: do you sell at one VAT rate or at several?
| Type | Typical business | VAT rate known at issue? |
|---|---|---|
| Single-purpose | A sauna selling only entry, or a clothing shop charging 21% on everything | Yes, one rate applies |
| Multi-purpose | A restaurant serving food (9%) and alcohol (21%), or a department store selling books (9%) and clothes (21%) | No, it depends on what the customer buys |
When is VAT on gift cards due: at the sale or at redemption?
| Moment | Single-purpose (EDI) | Multi-purpose (MDI) |
|---|---|---|
| Card is sold | Book revenue and VAT straight away | No revenue and no VAT, the amount is a liability |
| Card is redeemed | No further VAT, the card acts as a means of payment | The liability becomes revenue, with VAT on what is spent |
| Customer tops up | VAT only on the top-up payment | The top-up is added to the VAT base |
The Dutch tax authority describes the same logic: for a multi-purpose voucher no VAT is due at the sale or resale, and the VAT is calculated on the amount the consumer paid, plus any extra payment at redemption.
A worked example with a card of €50
Prices include VAT, so you calculate backwards: VAT = rate ÷ (100 + rate) × amount including VAT. At 21% that is 21/121 of the amount, at 9% it is 9/109.
Single-purpose, clothing shop at 21%. You sell a €50 card. VAT is 21 ÷ 121 × 50 = €8.68 and revenue is €41.32. You book that at the sale. When the customer redeems the card, there is nothing left to book for revenue and VAT.
Multi-purpose, department store with 9% and 21%. You sell a €50 card and book €50 as a liability, without VAT. The customer buys a book for €20 first, then a shirt for €30:
| Moment | Amount | VAT | Revenue |
|---|---|---|---|
| Card is sold | €50.00 liability | none | none |
| Book of €20 (9%) | €20.00 | €1.65 | €18.35 |
| Shirt of €30 (21%) | €30.00 | €5.21 | €24.79 |
| Total after redemption | €50.00 | €6.86 | €43.14 |
On a single-purpose card at 21% the VAT would have been €8.68. On a multi-purpose card the VAT follows what is spent. Amounts are rounded to cents, and your accountant decides on ledger accounts and rounding.
How to tell which type your card is
- List everything a customer can buy with the card.
- Write the VAT rate next to each item.
- One rate only? The card is single-purpose.
- Several rates, for example food and alcohol or books and clothes? The card is multi-purpose.
- In doubt? Treat it as multi-purpose.
Three mistakes come up often. The first is to classify by what customers usually buy instead of what the card allows. Second is to let the till decide the type. The third is to assume that an expired card gets the VAT back automatically.
What if your till cannot handle the difference?
A till cannot change the type of a card. In Gifty’s setup guide for MplusKASSA (in Dutch), the gift card article gets a VAT rate of 0%, which means the till only charges VAT at redemption. That fits a multi-purpose card. With a single-purpose card the VAT was already due at the sale, so such a setting will not match your VAT return by itself.
Gifty’s accounting handbook found no rule that lets a single-purpose card be treated as multi-purpose because of till limits. It lists four routes: make the card genuinely multi-purpose by letting it cover goods at another rate, use a till with a gift card module, correct by hand outside the till, or ask the tax authority or a tax adviser.
What happens to VAT on gift cards when they expire?
For a single-purpose card the VAT was paid at the sale and expiry does not undo it. The Dutch tax authority mentions a refund only where you take the voucher back and repay the consumer. For a multi-purpose card no VAT ever became due. According to the handbook the expired balance is released as other income without VAT, and that release counts for income or corporate tax. Your accountant decides how and when to book it.
Your next steps
- Agree the type with your accountant before you sell the first card.
- Set up your till and bookkeeping to match.
- At every VAT return, check the redemptions of the period. For a multi-purpose card the VAT follows them.
- At year end, look at the outstanding balance and the Expected expiry report.
- If your range or a VAT rate changes, review the type before you issue new cards.
The full checklist per moment is in our older article How to correctly process gift vouchers in your administration.
What this article does not cover
This is general information for businesses in the Netherlands and not tax advice. Your situation may differ, for example for free cards, cards redeemable at other businesses or a change in VAT rates. Belgium applies the same EU framework with its own rates and guidance. It is based on the Dutch tax authority and on Gifty’s accounting handbook of March 2026.