A discount coupon lowers the selling price and therefore reduces both revenue and the VAT tax base — it is not booked as a cost but as a reduction of income. A voucher with a nominal value works differently: it is recorded as a liability on sale, and for a single-purpose voucher VAT is due already when the voucher is sold. Loyalty points are a future obligation to the customer, and cashback has the nature of an additional discount.
Coupons, points and cashback look similar to the customer, but they behave differently in accounting and VAT. Because the voucher rules stem from harmonised EU Directive 2016/1065, the same single- and multi-purpose logic applies across the Union; the figures below use the Slovak setting and its 2026 VAT rates.
How is a discount coupon booked?
A discount coupon has no nominal value of its own — it merely reduces the price of a specific purchase, for example by 10% or by a fixed amount. In accounting terms it is not a cost but a reduction of revenue: you simply book the lower selling price. Under Section 22(4) of Slovak VAT Act No. 222/2004 Coll., the tax base is reduced by the amount of the discount when it is granted at the time of supply.
Example: on goods originally priced at EUR 100 including VAT, with a EUR 10 coupon, the customer pays EUR 90. At the 23% standard VAT rate the tax base is EUR 73.17 and VAT is EUR 16.83 — so the discount also lowers the VAT remitted.
Does a discount reduce the VAT base?
Yes. If the discount is granted directly at the point of sale, it reduces the tax base immediately and the invoice already shows the reduced amount. If you grant it later — for instance after a turnover threshold is met — you issue a corrective document (credit note) and adjust the tax base and VAT in the period in which the discount is recognised. The key requirement is that the amount and conditions of the discount are demonstrable.
What is the difference between a coupon and a voucher?
Unlike a coupon, a voucher represents an entitlement to goods or a service of a certain value — the customer buys it first and redeems it later. VAT law distinguishes two types of voucher, and the rules have applied since the EU directive was implemented:
- Single-purpose voucher — the place of supply and the VAT rate are already known at issue (for example a voucher for a specific restaurant). VAT is remitted when the voucher is sold.
- Multi-purpose voucher — the rate or the exact supply is not clear at issue (for example a voucher for a chain with a broad assortment). VAT is remitted only on redemption.
Example: selling a single-purpose voucher for EUR 50 at the 23% rate means VAT is due immediately — a tax base of EUR 40.65 and VAT of EUR 9.35. For a multi-purpose voucher you record only the received payment as a liability on sale and account for the tax when the customer exchanges the voucher for specific goods.
How are loyalty points accounted for?
Loyalty points that a customer collects and later exchanges for a discount or goods represent a future obligation of the shop. In accounting terms, part of the revenue from the original purchase is not recognised immediately as income but deferred through an accrual or liability for the future performance — that is, to the moment the customer redeems the points. The revenue is thereby matched to the period in which the related cost actually arises.
On redemption, the treatment follows that of a discount: the price and the VAT base are reduced. It is important to have clear loyalty-programme rules so that the value of the obligation can be reliably measured.
What about cashback?
Cashback — returning part of the price to the customer after the purchase — has the nature of an additional discount from the seller’s perspective. It reduces revenue and the VAT base in the period in which it is granted and is evidenced by a corrective document. The situation differs when cashback is paid by a third party (such as an affiliate portal): that is not a discount from your price but a relationship between the customer and the portal, and it does not affect your VAT.
What mistakes do e-shops make most often?
The most common error is confusing a coupon with a voucher — for a single-purpose voucher VAT is due already on transfer, whereas for a coupon it is due only when the goods are actually sold. A second mistake is recognising the full revenue as income even when the customer earned loyalty points that represent a future obligation. Third, e-shops forget the corrective document for later discounts and cashback, creating a mismatch between the VAT declared and the VAT actually due.
Not sure how to set up VAT and accounting for discounts, vouchers or a loyalty programme? We will walk through your e-shop step by step.
FAQ
Do I have to remit VAT immediately when selling a gift voucher?
It depends on the type of voucher. For a single-purpose voucher, where the VAT rate and the place of supply are already known at issue, the tax is due immediately on the transfer of the voucher. For a multi-purpose voucher, where the rate or the exact supply is not known in advance, VAT is due only on redemption. Correct classification of the voucher is therefore decisive.
Is a discount coupon a cost for the company?
No. A discount coupon with no nominal value merely reduces the selling price, so it is booked as a reduction of revenue rather than a separate cost. The discount granted at the time of supply also reduces the VAT tax base. What would enter costs instead are, for example, the expenses of printing or distributing the coupons as part of marketing.
How is cashback paid by a partner portal taxed?
If the cashback is paid by a third party, such as an affiliate portal, it is not a discount from your price and does not affect your VAT — it is a relationship between the customer and the portal. It is different when you as the seller return part of the price directly; then the cashback is an additional discount that reduces revenue and the VAT base and is evidenced by a corrective document.