Market leading insight for tax experts
View online issue

Astra Zeneca and supplies of vouchers to employees

On 29 July the European Court of Justice (ECJ) delivered its judgment in Astra Zeneca UK Limited v HMRC (Case C-40/09). The reference to the ECJ was for a preliminary ruling on the VAT implications of an employer issuing to its employees vouchers with a cash value exchangeable for goods or services at certain well-known retailers in return for the employees giving up part of their remuneration (a salary sacrifice). The ECJ’s ruling that the remuneration given up constitutes consideration for the issue of the vouchers giving rise to a VAT liability for the employer has important implications for employers running similar schemes.

Previous law and practice

Where goods or services are provided to employees for their private use for free there is a supply deemed to be made equal to the cost to the employer of providing the goods or services (VATA 1994 Sch 6 paras 6 and...

If you or your firm subscribes to, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.