New laws came in to force in December 2019 that gave consumers more protection when buying or spending gift vouchers in Ireland.
So hopefully consumers can feel a bit safer when buying gift vouchers for Christmas presents now. But – with the problems caused by inflation and energy prices – there is still a chance of some retailers not being around by the end of 2023
A Summary of the Rules on Gift Vouchers in Ireland
(The new rules do not apply to electronic money gift cards. These are cards such as One4all gift cards, that can be used in a number of different shops.)
- Gift vouchers in Ireland must be valid for at least 5 years –
- Traders cannot specify that a gift voucher has to be spent in one transaction.
- Traders cannot charge a fee to change the name on a gift voucher, (if you have to register a name on the voucher).
- If the balance remaining on a gift voucher is more than €1 after you buy something with it, a trader must reimburse the balance to you. They can give you cash, make an electronic transfer or give you another gift voucher.
(These new rules apply to gift vouchers or gift cards bought after 2nd December 2019)
The following vouchers are also exempt from these rules:
- Vouchers that you can only use to buy specified goods and services at a discounted price, from a specified trader on a specified date, or for a specified period of 3 months or less. For example, vouchers from deals websites.
- Vouchers issued as part of a customer loyalty or promotion scheme.
- Vouchers issued as a refund for goods you returned to a trader.
What if the Retailer Goes Out of Business?
There will still be an issue with unspent gift vouchers if a retailer goes out of business. The gift vouchers will nearly always be worthless . If you bought a gift voucher with a debit or credit card – then you could try and claim a refund off your card provider if the retailer goes out of business.
See more on how to claim chargeback on debit and credit cards here.
Getting a Refund on a One4all card.
A very common gift voucher in Ireland is the One4all Digital Gift Card . This is a pre-loaded card issued by GVS Prepaid (Europe) Limited. One4all Digital Gift Cards are accepted as a contactless payment in participating outlets. These are considered electronic money cards.
Businesses like to use One4all Gift Cards to reward staff at Christmas. The card qualifies for the Government’s Benefit in Kind tax exemption, allowing businesses to reward their staff up to €1000 each free of tax, USC or PRSI
You may request a repayment of any credit balance outstanding on a One4all gift card by calling them on 01 870 8111. A Redemption Fee of €8 will be applied. No redemption fee is charged if you request it within 14 days of buying the card.
Can you Transfer One4all to a Bank Account?
You may request a repayment of any credit balance outstanding on a One4all gift card by calling them on 01 870 8111
One4all will refund the balance to you by bank transfer to your nominated bank account. A Redemption Fee of €8 will be applied. No redemption fee is charged if you request it within 14 days of buying the card.
If you received a One4All Card from a business (including a third party), One4All reserves the right to notify the corporation/business of the redemption request.
If you received a One4All Card as part of the Irish Government’s annual Benefit in Kind allowance, they will not be able to process a refund directly to you because you or your employer may then be subject to a tax liability. You must speak to the person who gave it to you if you are looking for a refund.
Watch out for the One4all inactive balance charge of €1.45 per month which is charged after the Card has been in issue for 12 months and it is not used. (The charge kicks in after 18 months for cards issued in November and December)
FAQs
Under the Consumer Protection (Gift Vouchers) Act which came into effect in December, 2019, a retailer must offer a minimum of five years use before the voucher expires.
When did the law change gift vouchers in Ireland? ›
Under the Consumer Protection (Gift Vouchers) Act which came into effect in December, 2019, a retailer must offer a minimum of five years use before the voucher expires.
How do you treat vouchers in accounting? ›
When a customer buys a non-refundable gift voucher that can be exchanged for goods or services of the issuing retailer, the retailer will recognise a 'contract liability' on its balance sheet. Ordinarily, that contract liability will be released to the income statement as and when the voucher is redeemed.
Is there VAT on gift vouchers Ireland? ›
The redeemable value of the voucher is only disregarded when they are ultimately used for the purchase of goods or services (i.e. redeemed). No VAT is due on the redemption of the voucher.
How long should a gift voucher be valid for? ›
The time it takes for a gift voucher to expire is decided by the vendor – our advice is to check the expiry date as soon as you receive it. There aren't any specific laws that say how long a gift voucher or card should last, meaning they could last anywhere from a few months to a few years.
Is VAT charged on gift vouchers? ›
When using these gift cards, VAT is paid once the goods are redeemed. If, for example, you own a company that delivers one type of service, everything you do will be subject to the same rate of VAT. You would, therefore, be issuing single purpose gift cards, meaning VAT would be declared at the point of sale.
How much money can be legally given to a family member as a gift in Ireland? ›
You may receive a gift up to the value of €3,000 from any person in a calendar year without having to pay Capital Acquisitions Tax (CAT). This means that you may take a gift from several people in the same calendar year and the first €3,000 from each disponer is exempt from CAT.
What are the Irish gifting rules? ›
Does it matter when you give a gift? Yes, the timing of your gift matters. You can only gift up to €3,000 per calendar year to one person. If you gift over that amount, you'll be liable for Capital Acquisitions Tax at a rate of 33%.
What are the 3 types of vouchers? ›
Types of Vouchers
- Debit or Payment voucher.
- Credit or Receipt voucher.
- Supporting voucher.
- Non-Cash or Transfer voucher (Journal voucher)
Accounting for the Sale of Gift Certificates
The sale of a gift certificate should be recorded with a debit to Cash and a credit to a liability account such as Gift Certificates Outstanding. Note that revenue is not recorded at this point.
The cash voucher form should contain space for the name of the cash recipient, that person's initials, the amount of cash disbursed, the date, the reason for the disbursem*nt, and the account code to which the disbursem*nt should be charged.
Are vouchers taxable in Ireland? ›
The value of the benefit of a meal voucher is the face value minus 19c. The value of the benefit cannot be less than your cost in providing it. You must add the value of the benefit, as notional pay, to your employee's pay to deduct: Income Tax (IT)
Do you have to declare a gift of money in Ireland? ›
If you receive a gift, you may have to pay gift tax on it. If you receive an inheritance following a death, it may be liable to inheritance tax. Both these taxes are types of Capital Acquisitions Tax. The benefit (the gift or inheritance) is taxed if its value is over a certain limit or threshold.
Do I have to pay customs on gifts in Ireland? ›
If the total value of your gift consignment does not exceed €700, a flat rate of 2.5% Customs Duty may be applied. This flat rate applies to Customs Duty only, not to Value-Added Tax (VAT) or Excise Duty.
What is the new law on vouchers in Ireland? ›
There is a 5-year minimum expiry date for all vouchers sold after 2 December 2019. This is set out in the Consumer Protection (Gift Vouchers) Act 2019. Under the rules, gift vouchers must either: Have no expiry date, or.
When did small gift exemption start in Ireland? ›
As and from 9th October 2019, a child is entitled to a life time tax- free threshold of €335,000 in respect of gifts and inheritances taken from his or her parents.
When did the gift tax law change? ›
The gift tax was first enacted in 1924, repealed in 1926, overhauled and reintroduced in 1932. At its peak in fiscal year 1999, it raised $4.6 billion in revenues, before the recent phased-in tax rate reductions ushered by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) took effect.
How long are gift vouchers valid for in Ireland? ›
Where there is an expiry date on a gift voucher, it should be at least five years. You should be given the expiry date in a durable form, for example in writing or in an email, and you should also be given the date the gift voucher was bought.
